Overview of 1031 Exchange

Wally Smith:

…and again, as a review, when you do a 1031 Exchange, you have 45 days from the closing of your sale to identify the property into which you’re going to exchange your assets.

You work through a qualified intermediary that has to be defined ahead of time. Who is the company that’s going to take the money? You don’t take it. A qualified intermediary does, and then within 45 days you have to identify to the qualified intermediary where that money’s going to go. And you can identify several properties, but then from 180 days after the close, you have to have succeeded and closed on the new property.