A single mistake can cost you the whole deferral.
Exchanges rarely fail for exotic reasons. They fail on deadlines, paperwork and money that moved the wrong way.
Mistakes that cost the deferral
Selling before the QI is engaged
Once proceeds reach you or your closing agent without an exchange agreement in place, there is no fixing it retroactively.
Vague or late identification
An identification that arrives on day 46, or that describes a property loosely, does not count.
Reinvesting less than you sold for
Buying down in value or in debt creates taxable boot. Sometimes that is fine — it should never be an accident.
Three steps, and we carry most of them
Call before you close
We confirm an exchange fits, map the deadlines against your timeline, and put the exchange agreement in place before the sale closes.
We hold the proceeds
Funds go from the closing table to us, never to you. That is what keeps the deferral intact.
You buy, we close it out
You identify and negotiate the replacement property. We handle the documentation, the funding and the reporting trail.
1031 Specialists
1031 exchange rules are complex and nuanced, and a single mistake can cost hundreds of thousands of dollars. The failures we see are almost always process failures, which means they are almost always preventable.
We are a qualified intermediary for IRC Section 1031 tax-deferred exchanges, facilitating exchanges for real estate investors in all fifty states. We handle the exchange agreement, the identification and closing deadlines, and the custody of exchange funds. Every exchange includes unlimited tax optimization consulting, audit protection and an attorney guarantee, on a simple flat fee you pay at close.
Mistakes that cost the deferral, answered
What is the most common way exchanges fail?
Missed or defective identification, followed closely by proceeds reaching the investor because no intermediary was engaged before closing.
Can a failed exchange be fixed?
Almost never after the fact. The deadlines are statutory and constructive receipt cannot be undone. Prevention is the only real remedy.
What should I do first?
Call before you go under contract. Everything that makes an exchange go smoothly is decided before the first property closes.
Talk to someone before the clock starts
Reach me directly, or call the main line and ask for anyone on the exchange team.
Main line
(631) 438-1031General email
info@1031specialists.comMailing address
30262 Crown Valley Pkwy, Suite B 464Laguna Niguel, CA 92677
The information on this page is general in nature and is not tax or legal advice. 1031 Specialists is a qualified intermediary, not a law firm, accounting firm or investment adviser. Consult your own tax and legal advisors about your circumstances before entering into an exchange.