Toll Free: +1.888.800.1031
Office: +1.678.805.4492
www.sea1031.com
3455 Peachtree Street, NE
Suite 500
Atlanta, GA 30326
Exchange Process: The Basics
There are three general steps to successfully completing a Forward Delayed 1031 Exchange. Upon your initial call, an SEA Exchange Specialist will help guide you through the steps of your exchange transaction, making the process simple and understandable. All potential clients receive one hour of complimentary exchange advisement, so never hesitate to call us when you have exchange questions.
Step One: Sale of the Relinquished Property
It is important to involve the Qualified Intermediary in advance of closing, as SEA must prepare and send exchange documentation to the Relinquished Property closing. We certainly can assist at the last minute, it is recommended to send documents well in advance of closing so all involved parties have enough time to read and review our instructions and documents. Upon closing, the exchange proceeds will be sent directly to SEA as the Intermediary, where they will be held in a secured account.
Step Two: Identification of Replacement Property
Within 45 days of the Relinquished Property closing, potential Replacement Properties must be identified. As a general rule, the taxpayer may identify as many as three potential Replacement Properties, however, there are alternative rules that allow the taxpayer to identify more than three properties.
Step Three: Acquisition of the Replacement Property
Within 180 days of the Relinquished Property closing, the taxpayer must acquire Replacement Property of sufficient value in order to defer all capital gains tax associated with the transaction. Replacement Property must have been identified within the 45 day period. Upon the taxpayers authorization, SEA will send exchange proceeds and documents directly to the Replacement Property closing.