CPA-led 1031 exchange guide
Delayed 1031 Exchange
A delayed exchange — sometimes called a forward exchange or a Starker exchange — is the standard 1031 structure. You sell first, then you buy. The Qualified Intermediary holds the proceeds in between.
Timeline
Day 0 is the relinquished closing. Day 45 is the identification deadline. Day 180 is the final closing deadline. All three are non-negotiable.
Why most exchanges are delayed
You usually know what you want to sell before you know what you want to buy. The 45/180 windows give you breathing room to find and close on replacement property without losing the deferral.
How it differs from a reverse exchange
In a reverse exchange the replacement property closes first and a parking entity holds it until the relinquished property sells. Reverse exchanges are more expensive and trickier — they only make sense when you can't sell first.
Frequently Asked Questions
Can I have multiple replacement properties?
Yes. Subject to the identification rules, you can close on more than one replacement property within the 180-day window.
What if I find replacement property quickly?
You can close as soon as the replacement seller is ready. There's no minimum waiting period — only the 180-day maximum.