Sell, buy, and keep the gain working for you.
A 1031 exchange lets an investor defer capital-gains tax by rolling one investment property into the next, provided the federal deadlines and handling rules are met. We close both ends and keep the exchange's clock in view the whole way.
Two deadlines run the whole show.
Both clocks start the day your sale closes, they run at the same time, and in the ordinary course they don't extend.
Your sale closes.
Proceeds go straight to the qualified intermediary, not to you. Both clocks start now.
Identify the replacement.
Your candidate replacement property (or properties) must be formally identified within 45 days of the sale.
Close on it.
The purchase of the replacement property must close within 180 days of the sale, not 180 days after the 45.
The rules that break exchanges.
Most failed exchanges fail on mechanics, not strategy. Three to respect from day one.
The money can't touch your hands.
Proceeds are held by a qualified intermediary between sale and purchase. Take receipt of the funds, even briefly, and the exchange can fail.
Investment for investment.
The federal like-kind rules are broad for investment real estate, but the property on both ends has to qualify. Your tax advisor confirms the fit.
The paperwork has to say "exchange."
The exchange has to be set up before the sale closes: contracts, assignments, and intermediary agreements in place ahead of the closing, not after it.
Where we fit.
An exchange has three seats at the table. Ours is the closings.
The closing attorneys, both ends.
- We conduct the sale closing and the purchase closing
- We coordinate with your qualified intermediary so the sale, the funds, and the purchase line up
- We keep the 45 / 180 clocks in view as the closings are scheduled
Intermediary and tax advisor.
- The qualified intermediary is an independent party who holds the proceeds, a role we coordinate with rather than fill
- Whether an exchange makes sense for you is your tax advisor's call
- We make sure the closings hold up their end of the plan
Exchange questions.
The ones investors bring to a first call.
What is a 1031 exchange?
Are you the qualified intermediary?
What are the deadlines?
Does the replacement property have to be in Connecticut?
This is general information, not legal or tax advice. Every situation is different. Reach out to discuss yours.
We respond within one business day.
Tell us a few details about your transaction. A member of the team will follow up with next steps.
Exchange on the horizon?
The best time to set up a 1031 is before the sale contract is signed. Tell us where things stand and we'll get the closing side ready for it.
Talk through an exchange