A forward, delayed or starker exchange are all considered the same type of 1031 exchange when the old or relinquished property is closed before the new or replacement property is closed.

• Exchanges can be grouped together representing one or multiple properties sold and replaced with one or many properties.
• Once the first property is closed, the following day, the 180 calendar day timeframe begins when all of the replacement properties must be closed.
• The same Taxpayer requirement states that the titleholder of the old property must be the titleholder of the new property. 

Atlas 1031 also accommodates reverse, simultaneous, build to suit or improvement, and leasehold improvement exchanges. If you are considering purchasing real property in a self directed Individual Retirement Account (IRA), Entrust is a well respected administrator of self directed IRAs, individual 401ks, and Simplified Employee Pension plans (SEPs).

7 Steps of a Delayed Exchange

1. Exchangor engages Atlas 1031 Exchange to accommodate the exchange by signing an engagement letter and completing a W-9.

2. Sale of old or relinquished property is negotiated and a Real Estate Sales contract is signed. Remember to include 1031 assignment language in the contract.

3. At the first of two closings, the Exchangor signs the traditional closing documents and exchange documents.

4. Net exchange proceeds are wired to a custodial banking partner to a non commingled escrow account under the individuals social security number or company's employed identification number.  If the Exchangor is not a US citizen, then the funds are wired to an account under their international tax identification number.

5. Identification and replacement period begins the day following the closing. Exchangor must identify by the 45th calendar day replacement property or the exchange ends on the 46th calendar day and the exchange funds are returned to the Exchangor with interest earned. Replacement property must be purchased within 180 calendar days from closing.

6. Real Estate Purchase Agreement is signed by Exchangor. Remember to include the replacement 1031 assignment language in the contract.

7. Closing is scheduled where traditional closing documents are signed along with exchange documents. Exchange proceeds are wired for closing.

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