A Delayed Exchange is a type of 1031 exchange that allows taxpayers to defer capital gains taxes by exchanging their investment property for another like-kind property. As a qualified intermediary for 1031 exchanges, we at 1031 Exchange Place help facilitate Delayed Exchanges for our clients.
In a Delayed Exchange, the taxpayer sells their investment property and then uses the proceeds to purchase a replacement property within a specific timeframe. The intermediary holds the funds from the sale until the replacement property is acquired, ensuring that the taxpayer does not have access to the funds and that the exchange is considered a tax-deferred transaction.
The IRS has specific rules regarding Delayed Exchanges, including the requirement that the replacement property must be identified within 45 days of the sale of the relinquished property and that the exchange must be completed within 180 days of the sale.
At 1031 Exchange Place, we understand the complexities and nuances of Delayed Exchanges and can guide our clients through the process to ensure a successful exchange. With our expertise and dedication to our client’s financial goals, we make the Delayed Exchange process as smooth and efficient as possible.