Navigating the 1031 Flow Process
Executing a 1031 flow requires the assistance of a Qualified Intermediary,
also known as a QI. That’s where 1031 Flow Connection comes in. We
assess your unique goals, recommend the most suitable flow type, and
handle the process from start to finish.
Below is a general overview of how a standard 1031 flow works. Other
types—like reverse or improvement flows—follow slightly different steps.
1- Sale Proceeds Go to the QI
Once your property sells, the funds must go directly to a Qualified Intermediary—not to you. Having access to the money can disqualify the flow. That’s why we secure your funds in a separate, dedicated account. Our coverage ensures your money stays protected throughout the 1031 process.
2- 45-Day Property Identification Window
After closing on your original property, you have 45 days to identify up to three potential replacement properties. To fully defer capital gains tax, you must purchase one of the listed properties,
and its value must match or exceed the one you sold.
3- 180-Day Deadline to Complete the Purchase
After selling your original property, you have 180 days to close on the replacement. The buyer on the new title must match the seller on the original property to maintain 1031 eligibility.
4- Wrapping Up Your FLow
When closing on the new property, your QI will handle the contract and paperwork needed to finish the flow. They’ll also send the funds to you in time to complete the purchase.
5- Submit Form 8824 to the IRS
The IRS requires reporting the flow on Form 8824 in the year the relinquished property is sold. Attach the form to your income tax return.
Need help or ready to begin? Call: 305-707-0676 for your consultation or start your flow online.