Steps to Complete a 1031 Exchange
This overview is designed for CPAs, real estate brokers, and real estate attorneys advising clients who are considering a 1031 exchange and evaluating whether a Delaware Statutory Trust (DST) investment may function as replacement property. Timing is critical in any 1031 exchange. Once a relinquished property closes, strict IRS deadlines apply — including the 45-day identification period and the 180-day exchange completion window. When DSTs are being evaluated, coordinating due diligence, suitability review, and offering availability within these deadlines requires early planning and clear communication among the client’s professional team.
Common Timing Issues
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Delayed engagement during the 45-day identification window
Clients may begin exploring DST options late in the identification period, reducing time for due diligence, documentation, and coordination with the qualified intermediary. -
Replacement property availability and offering timelines
DST offerings are subject to availability and may become fully subscribed. Waiting too long to evaluate options can limit flexibility. -
Financing and documentation coordination
Even when DSTs include non-recourse financing, subscription documents, suitability review, and funding instructions must be completed within exchange deadlines, which can compress quickly near closing.
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If you have a client in the 45-day ID period, let's discuss options.