Forward Exchange Structure Setup
Traditional forward exchange structure with qualified escrow and identification requirements.
Forward exchange setup establishes the traditional structure for 1031 exchanges where the relinquished property is sold before replacement properties are acquired. Our forward exchange setup service is designed for property owners in New York, NY who prefer this standard approach to like-kind exchanges.
We provide complete setup and coordination for forward exchange structures, working closely with qualified intermediaries and qualified escrow holders to ensure all IRS requirements are met from the initial planning through final execution. This includes establishing the proper escrow arrangements, coordinating with all parties involved, and ensuring compliance with identification and exchange period rules.
The forward exchange begins with the sale of your relinquished property, followed by the 45-day identification period and 180-day exchange completion period. During this time, your exchange funds are held securely by a qualified intermediary while you identify and acquire replacement properties that meet IRS like-kind requirements.
Our service includes initial exchange structure planning, qualified intermediary selection and setup, escrow account establishment, timeline coordination, and ongoing compliance monitoring. We help you understand the benefits and requirements of forward exchanges while ensuring all documentation and procedures follow established IRS guidelines.
Whether you're exchanging properties within New York, NY or expanding nationwide, our forward exchange setup provides the foundation and coordination needed for successful completion. We work with experienced qualified escrow providers to ensure your funds are properly managed throughout the exchange process.
What's Included
- Forward exchange structure planning and setup
- Qualified intermediary selection and coordination
- Qualified escrow account establishment
- Exchange documentation preparation
- Timeline and deadline coordination
- Identification period management
- Boot analysis and financing coordination
- Compliance monitoring throughout exchange
Common Situations
Property owners in New York, NY selling appreciated real estate and needing to identify replacement properties within strict IRS timelines.
Commercial real estate investors structuring traditional forward exchanges to defer capital gains taxes on portfolio properties.
Real estate professionals coordinating multiple stakeholder involvement in forward exchange transactions.
Example Engagement
Example of the type of engagement we can handle
Service Type:
Forward Exchange Structure Setup
Location:
New York, NY
Scope:
Complete setup and coordination of forward exchange structure, including qualified intermediary selection, escrow establishment, and timeline management.
Client Situation:
Commercial property owner in New York, NY planning to sell office building and acquire replacement properties through traditional forward exchange.
Our Approach:
Selected qualified intermediary, established escrow arrangements, prepared exchange documentation, coordinated identification timeline, and ensured compliance with all IRS requirements.
Expected Outcome:
Successfully structured forward exchange with proper escrow setup and clear timeline for property identification and acquisition.
Frequently Asked Questions
What are the key components of a forward exchange setup in New York, NY?
A forward exchange setup in New York, NY includes selecting a qualified intermediary, establishing qualified escrow arrangements, preparing exchange documentation, setting up identification timelines, and coordinating with all parties involved in the property transactions.
How does the qualified escrow work in a forward exchange in New York, NY?
In a forward exchange in New York, NY, qualified escrow holds your relinquished property proceeds securely until replacement properties are acquired. The escrow must be established with an unrelated party and cannot be controlled by you or any disqualified person during the exchange period.
What identification rules apply to forward exchanges in New York, NY?
Forward exchanges in New York, NY follow the standard IRS identification rules: 3-Property Rule, 200% Rule, or 95% Rule. You must identify replacement properties within 45 days of closing your relinquished property and complete acquisitions within 180 days.
How do you coordinate the timing between property sales and purchases in New York, NY?
We coordinate timing in New York, NY by establishing clear timelines for relinquished property closing, starting the 45-day identification clock, and ensuring replacement property acquisitions are scheduled within the 180-day exchange period. This requires careful planning with all parties involved.
Can I use financing in a forward exchange setup in New York, NY?
Yes, financing can be used in forward exchanges in New York, NY, but it may create boot if the replacement property has less debt than the relinquished property. We help you analyze financing scenarios to minimize boot recognition and optimize your exchange structure.
What role does the qualified intermediary play in forward exchanges in New York, NY?
The qualified intermediary in New York, NY acts as a neutral third party to hold exchange funds, prepare required documentation, ensure IRS compliance, and facilitate property transfers. They cannot be related to you or any disqualified person involved in the exchange.
Educational content only. Not tax, legal, or investment advice. 1031 defers income tax on qualifying real property and does not remove transfer or documentary taxes.
Ready to Get Started?
Contact us to discuss your situation in New York, NY. We can share references upon request.
Contact Us