Deferred Exchange
The standard 1031 structure: you sell first, then buy the replacement within the 45/180-day deadlines.
Definition
A deferred (or "delayed" / "forward") exchange is the most common form of 1031. You sell your relinquished property first, a qualified intermediary holds the proceeds, and you then acquire your replacement property within the 45-day identification and 180-day exchange windows. Because the two closings happen at different times, the intermediary and the deadlines are what keep it a valid exchange rather than two taxable sales.
Why it matters
Almost every exchange our customers do is a deferred exchange. The alternative structures — reverse and improvement exchanges — are more complex and usually cost more. Knowing you’re doing the standard kind keeps expectations right. Try the calculators to see your two deadlines on a timeline.
Related terms
General education — not tax or legal advice. This explains how §1031 exchanges work in general terms and uses simplified assumptions. Rules and tax rates change and your situation is specific. Talk to a qualified CPA or tax attorney before you rely on any of it. See our full terms & legal notice.