The Process
How a CPA-Led 1031 Exchange Works
A strategic, CPA-led process for investors looking to defer taxes, preserve capital, and reinvest with confidence — every step covered.
Step 1 — Engage the Qualified Intermediary before closing
The exchange agreement must be in place before the relinquished property closes. Brandon provides guidance while i1031 prepares the exchange documents, coordinates assignment into the sale contract, and provides wiring instructions to the closing agent.
Step 2 — Sell the relinquished property (Day 0)
At closing, proceeds wire directly to the QI's segregated exchange account. You never receive or constructively receive the funds — that is the requirement that preserves deferral.
Step 3 — Identify replacement property within 45 days
You have until midnight of Day 45 to deliver a written, signed identification to the QI. The 3-property rule, 200% rule, or 95% rule must be satisfied.
Step 4 — Close on replacement property by Day 180
All identified replacement property must close by midnight of Day 180 (or your tax return due date including extensions, whichever is earlier). Funds wire from the exchange account to the closing.
Step 5 — Report on Form 8824
Your tax preparer files Form 8824 with the return for the year of the exchange. i1031 provides the Qualified Intermediary records, and Brandon helps organize the planning context for your filing advisor. The monthly 1031 exchange briefing walks through the same sequence before a sale is under contract.