Follow the complete 1031 exchange process from planning to compliance.
A 1031 exchange follows a strict timeline with multiple phases. Understanding each phase helps you prepare the right documents, meet critical deadlines, and coordinate with your team of professionals.
Important: The IRS enforces strict deadlines. Missing any deadline by even one day can disqualify your entire exchange and trigger immediate tax liability.
Follow these 5 phases from planning to compliance
Lay the foundation for a successful exchange by assembling your team and understanding requirements.
Close the sale of your property with your Qualified Intermediary holding the proceeds.
Identify potential replacement properties and submit written identification to your QI by midnight of Day 45.
Complete the purchase of your replacement property(ies) with QI transferring exchange funds at closing.
Complete required tax reporting and maintain proper records to ensure IRS compliance.
You have exactly 45 days from the sale of your property to identify potential replacement properties in writing to your Qualified Intermediary. This deadline is strictly enforced with no extensions.
You must close on your replacement property within 180 days of selling your original property (or by your tax return due date, whichever is earlier). This is your second critical deadline.
Most failed exchanges result from inadequate planning. Before listing your property for sale, assemble your team, understand the timeline, and have a strategy for identifying replacement properties.
Each phase requires specific documentation. Your Qualified Intermediary will guide you through the paperwork, but understanding what's needed at each stage helps you stay organized and compliant.
Get expert help navigating every phase of your 1031 exchange from experienced professionals