Section 1031 Forward Exchanges
A Section 1031 forward exchange is the most common type of tax-deferred exchange, and the logical choice for real estate investors who want to sell one investment property and reinvest the proceeds into another while deferring federal capital gains taxes.
Rattikin Exchange Services guides you through every step of the process, handling all documentation, deadlines, and coordination so your exchange goes smoothly.
Why a Forward Exchange Makes Sense
- Defer federal capital gains taxes on the sale of investment property
- Trade up to a larger or more valuable property without an immediate tax hit
- Keep more of your proceeds working for you in your next investment
- A qualified intermediary is required by the IRS to hold your funds during the exchange
How the Forward Exchange Process Works
Once you appoint Rattikin Exchange as your qualified intermediary, we prepare all required documentation, including:
- Exchange Agreement, outlining the rights and obligations of all parties
- Assignment of Rights and Notification for the relinquished property contract
- Notice, Waiver and Release, outlining deadlines and client obligations
- Identification of Replacement Property form, completed when you select your replacement property
After closing on your sale, we receive and hold the net proceeds pending your purchase of replacement property. From there, the clock starts on two key deadlines: you have 45 days to identify your replacement property and 180 days from your original sale date to close on it.
Ready to Start Your Forward Exchange?
Contact our team today for a personal consultation. We'll walk you through the process, answer your questions, and handle everything from start to finish.
