Concise Overview of 1031 Exchanges - Series IV

Concise Overview of 1031 Exchanges - Series IV

1031 Exchange Structures

The most common 1031 exchange structure is a forward, or delayed, 1031 exchange where you sell your relinquished property first and then acquire your like-kind replacement properties within the prescribed 1031 exchange deadlines.  A reverse 1031 exchange allows you to acquire your like-kind replacement property first and then subsequently dispose of your relinquished property within the prescribed 1031 exchange deadlines.  An improvement (build-to-suit or construction) 1031 exchange allows you to use your 1031 exchange funds to acquire like-kind replacement property and to use your excess 1031 exchange funds to construct or improve the like-kind replacement property acquired. 

1031 Exchange Deadlines

There are very specific and mandatory 1031 exchange deadlines that must be followed in a forward 1031 exchange.  You have 45 calendar days from the close of the relinquished property transaction to identify potential like-kind replacement properties being considered for purchase and an additional 135 calendar days - for a total of 180 calendar days - to complete the 1031 Exchange by acquiring some or all of the identified like-kind replacement properties.