1031 Exchange
Explained

Every investor’s situation is unique, and 1031 exchanges can be structured in several ways to meet specific goals. Below are the four primary exchange types to consider.

Dealer property, real estate held primarily for resale or as inventory, does not qualify. The IRS focuses on the investor’s intent at the time of acquisition to determine eligibility.

​

Simultaneous Exchange

In a simultaneous exchange, the sale of the relinquished property and the purchase of the replacement property occur on the same day. While less common today, this type of exchange requires precise coordination. Even in a same-day transaction, using a qualified Exchange Accommodator is essential to ensure compliance with IRS rules.

​​

Delayed Exchange

The delayed exchange is the most widely used structure. It allows investors to sell their property first, then identify and acquire a replacement property within 180 days. This option provides flexibility and is ideal for most investors completing a standard 1031 exchange.

 

​

 

Reverse Exchange

A reverse exchange allows investors to purchase their replacement property before selling their existing one. Because both properties cannot be owned simultaneously, Asset Exchange Company acts as the Exchange Accommodating Titleholder, temporarily holding title to one of the properties until the sale is complete.

If you are considering a reverse exchange, please contact Asset Exchange Company at least two weeks before closing on your replacement property. For details or a free consultation, call 877.471.1031.