A delayed exchange allows an exchanger to dispose of relinquished property, identify replacement property within 45 days of transfer of the relinquished property and obtain the replacement property within 180 days of the transfer of the relinquished property. Steps in a delayed exchange are as follows:
Steps in a delayed exchange are as follows:
- The exchanger enters into an exchange agreement as well as an assignment and assumption agreement with JELD-WEN 1031. The relinquished property is conveyed from the exchanger to the purchaser and JELD-WEN 1031 receives the sale proceeds upon closing (to protect the exchanger from the receipt of funds, which would negate the exchange). During the exchange period, the exchanger's access to the funds is restricted as required by the IRS.
- The exchanger has 45 days from the day property is relinquished to identify replacement property, and the earlier of 180 days or the due date of the exchanger's tax return with any extensions included to acquire at least one of the identified properties.
- JELD-WEN 1031 is assigned into the purchase of the replacement property and the seller conveys replacement property to the exchanger. Exchange funds are transferred to the settlement agent by JELD-WEN 1031 to acquire the replacement property for the exchanger, and the exchange transaction is complete.