Get the details on forward exchanges.

INTRODUCTION

What is a forward exchange?

In a forward exchange (also known as a delayed exchange), you’ll first sell your current investment property (“relinquished property”). The proceeds from that sale are then held by a Qualified Intermediary until they’re used to purchase your replacement investment property within 180 days of the sale (“replacement property”). With this strategy, you defer paying capital gains taxes until the replacement property is sold without an exchange, allowing you to put that money to work in the meantime.

HOW IT WORKS

Plan ahead for your forward exchange.

Infographic - forward exchange timeline, mobile

Identification Period

You must identify the replacement property within 45 days of closing on the relinquished property.
The 45-day identification period is not extended if the 45th day should happen to fall on a Saturday, Sunday or legal holiday.

Exchange Period

You must close on your replacement property by whichever of the following milestones occurs first:

180 days after transfer of your first relinquished property.
The due date of filing your federal income tax return for the year in which you transferred the first relinquished property, including extensions.

TESTIMONIALS

Our customers trust us.

The First American Florida team managed our 1031 exchange that had multiple complexities with unparalleled professionalism, efficiency, quick turnaround, trustworthiness and patience. We could rely on them to guide us through this process every step of the way, which removed a huge burden from us.

Amra from Florida

1031s are not easy, but the Louisiana team at First American made what felt very complicated, much easier. I was so grateful for their help, support and clarity in answering all my questions and getting the 1031 done exactly as required.

Trina from New York

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