Forward Exchange Planning

Forward exchange planning service helps Chicago, IL investors structure compliant like kind exchanges by selling relinquished property first, then identifying and acquiring replacement properties within the required deadlines. This service provides strategic guidance for investors who need to coordinate the sale of their current property with the identification and purchase of replacement properties to defer capital gains taxes.

Our team works with Chicago, IL investors to understand their exchange objectives, property timelines, and replacement property preferences. We coordinate with Qualified Intermediaries to establish exchange accounts and work with qualified escrow agents to ensure proper fund handling. The service includes deadline monitoring for the forty five day identification deadline and the one hundred eighty day acquisition deadline to ensure all transactions remain compliant.

Forward exchange planning is ideal for Chicago, IL investors who have identified a buyer for their relinquished property and need support structuring the exchange, identifying replacement properties, and coordinating the entire process. We help investors understand the timing requirements, identification rules, and documentation needs to maintain exchange compliance throughout the transaction.

What We Include

  • Strategic forward exchange structure planning
  • Coordination with Qualified Intermediary for exchange account setup
  • Replacement property identification support
  • Deadline monitoring for forty five day and one hundred eighty day milestones
  • Qualified escrow coordination for fund handling
  • Identification letter preparation and delivery
  • Exchange documentation support
  • Stakeholder coordination and updates

Common Situations

Chicago, IL investor selling property and needs to structure forward exchange with replacement property identification within forty five days

Investor with buyer identified for relinquished property and needs forward exchange planning to coordinate entire process

Investor approaching sale closing and needs immediate forward exchange planning to ensure compliance with all timing requirements

Example of the type of engagement we can handle

Service Type

Forward Exchange Planning

Scope

Structure forward exchange from sale of Chicago property to acquisition of replacement properties nationwide within forty five day identification and one hundred eighty day closing deadlines

Client Situation

Investor selling Chicago multifamily property with closing in thirty days, needs forward exchange planning to identify and acquire industrial replacement properties

Our Approach

Coordinate with Qualified Intermediary for exchange account setup, begin replacement property identification immediately, structure identification letters, monitor all deadlines, coordinate with qualified escrow agents

Expected Outcome

Compliant forward exchange structure with replacement properties identified before forty five day deadline and acquired within one hundred eighty day window, all documentation properly coordinated

Educational content only. Not tax, legal, or investment advice.

Frequently Asked Questions

What identification rules apply to forward exchange planning for Chicago, IL investors?
Chicago, IL investors using forward exchange planning can identify replacement properties using the three property rule, two hundred percent rule, or ninety five percent rule. Our forward exchange planning service helps structure identification letters and coordinate delivery to your Qualified Intermediary to ensure compliance with IRS requirements.
How does boot affect Chicago, IL investors in forward exchanges?
Boot for Chicago, IL investors in forward exchanges can occur if cash is received from the sale, debt is reduced, or personal property is included in the transaction. Our forward exchange planning service documents all potential boot sources, but investors should work with their tax advisors to calculate the correct tax impact for their specific exchange situation.
What happens if Chicago, IL investors cannot identify replacement properties within forty five days in a forward exchange?
If Chicago, IL investors cannot identify replacement properties within the forty five day deadline in a forward exchange, the exchange may fail and taxes become due on the sale proceeds. Our forward exchange planning service begins property identification immediately after the relinquished property closes to maximize options and help prevent this situation.
How does forward exchange planning help Chicago, IL investors coordinate with Qualified Intermediaries?
Forward exchange planning helps Chicago, IL investors coordinate with Qualified Intermediaries by establishing exchange accounts, structuring identification letters, and ensuring proper fund handling throughout the exchange process. Our service works directly with Qualified Intermediaries to maintain compliance and meet all timing requirements.
Can Chicago, IL investors use forward exchange planning for properties in different states?
Yes, Chicago, IL investors can use forward exchange planning to sell property in one state and acquire replacement properties in any other state nationwide. The IRS like kind requirement focuses on property type, not location. Our forward exchange planning service helps coordinate multi state exchanges while maintaining compliance with all timing requirements.
What is the one hundred eighty day deadline for Chicago, IL investors in forward exchanges?
The one hundred eighty day deadline for Chicago, IL investors in forward exchanges is the maximum time allowed to acquire replacement properties after the relinquished property sale closes. Our forward exchange planning service monitors this deadline and coordinates with qualified escrow agents to ensure timely closings that meet IRS requirements.

Ready to Get Started?

Contact our team to discuss how Forward Exchange Planning can support your 1031 exchange in Chicago, IL. We'll help you navigate the 45-day identification deadline and 180-day closing requirement.