1031 exchange software that keeps the 45 day list, the 180 day clock and the funds trail on one file
A 1031 exchange qualified intermediary is the party that holds the proceeds of a sale so the taxpayer never has them, which is what keeps a deferred exchange out of constructive receipt under 26 CFR 1.1031(k)-1. The identification period ends at midnight on the 45th day after the relinquished property transfers, and the exchange period ends at midnight on the earlier of the 180th day or the due date of the return. Neurobird holds the file, the clock and the funds trail on one record.
Neurobird 1031 Exchange Qualified Intermediary in short
- Start the 45 day and 180 day clocks from the relinquished transfer date and show them on the same file
- Hold the identification as a signed written document with the date and the recipient recorded
- Test an identification against the 3 property, 200 percent and 95 percent rules before it is accepted
- 45 days The identification period, beginning on the date the taxpayer transfers the relinquished property and ending at midnight on the 45th day after it. Identification must be in a written document signed by the taxpayer and delivered to a person involved in the exchange who is not a disqualified person. 26 CFR 1.1031(k)-1
- 180 days The exchange period, ending at midnight on the earlier of the 180th day after the transfer or the due date, including extensions, of the taxpayer's return for the year in which the relinquished property was transferred. 26 CFR 1.1031(k)-1
- Pricing runs 199 to 1650 US dollars per month across 3 tiers. Early access is free.
What qualified intermediaries and exchange accommodators actually deal with
Why it stays broken
A qualified intermediary is defined by what it is not. There is no federal licence, the safe harbor is written as a set of prohibitions, and a handful of states run their own registration and bonding rules on top of it. So the job is proving negatives: that the funds were never available to the taxpayer, that nobody involved was a disqualified person, that the identification was in writing before midnight on the 45th day. Escrow software records balances, not prohibitions.
Under 26 CFR 1.1031(k)-1 the identification period ends at midnight on the 45th day after the taxpayer transfers the relinquished property.
To qualify as a Section 1031 exchange, a deferred exchange must be distinguished from the case of a taxpayer simply selling one property and using the proceeds to purchase another property (which is a taxable transaction).
Neurobird 1031 Exchange Qualified Intermediary Compliance Platform
One file per exchange: the relinquished closing that starts both clocks, the written and signed identification, the replacement closings against it, the escrow movements in and out, and the disqualified person check that stands behind the whole arrangement.
- 1Start the 45 day and 180 day clocks from the relinquished transfer date and show them on the same file
- 2Hold the identification as a signed written document with the date and the recipient recorded
- 3Test an identification against the 3 property, 200 percent and 95 percent rules before it is accepted
- 4Record the disqualified person check, including the 2 year lookback on agents, at the point of engagement
What changes with Neurobird 1031 Exchange Qualified Intermediary?
The same work, read left to right: how it runs today, and how it runs once the record is in one place.
| Today | With Neurobird 1031 Exchange Qualified Intermediary |
|---|---|
| The identification list arrives by email on day 44 and it is not signed | Start the 45 day and 180 day clocks from the relinquished transfer date and show them on the same file |
| Two exchanges close in the same week and the escrow balances live in a bank portal rather than in the file | Hold the identification as a signed written document with the date and the recipient recorded |
| A referral partner turns out to have been the taxpayer's real estate broker fourteen months ago | Test an identification against the 3 property, 200 percent and 95 percent rules before it is accepted |
Who is this for?
The same 45 days, three very different desks.
You run exchanges as your whole business
Volume, deadlines and escrow. You need every open file to show its two clocks and its balance on one screen.
You accommodate exchanges alongside closings
The exchange is a small share of the work but carries the largest tail risk. You need the disqualified person test recorded, not remembered.
You hold funds for others
The qualified escrow account rules are specific about who may hold and who may touch. You need the audit trail to show both.
The exchange file, as your officer would work it
Record a closing and watch both clocks, the identification test and the escrow balance move together.
| Requirement | Status | Next due | |
|---|---|---|---|
| EX-2302, reverse exchange, accommodation titleholder in place | current | in 42d | |
| EX-2291, relinquished closed 12 days ago, identification due in 33 days | due soon | in 9d | |
| EX-2260, day 171 of 180, one replacement closing outstanding | current | in 120d | |
| EX-2276, 4 properties identified, 200 percent rule satisfied | overdue | 3d late | |
| EX-2260, day 171 of 180, one replacement closing outstanding | current | in 64d |
Tick a requirement to file evidence against it.
What the rules say about a deferred exchange
The two deadlines, the three identification rules, the disqualified person test and the safe harbors the Service has published around them.
The identification period, beginning on the date the taxpayer transfers the relinquished property and ending at midnight on the 45th day after it. Identification must be in a written document signed by the taxpayer and delivered to a person involved in the exchange who is not a disqualified person.
26 CFR 1.1031(k)-1The exchange period, ending at midnight on the earlier of the 180th day after the transfer or the due date, including extensions, of the taxpayer's return for the year in which the relinquished property was transferred.
26 CFR 1.1031(k)-1The number a taxpayer may identify without regard to value. Beyond that, the 200 percent rule caps aggregate identified fair market value at twice the value of the relinquished property, and identifying more than either allows is treated as identifying nothing at all.
26 CFR 1.1031(k)-1The rescue rule where too much has been identified: an over identification still works if the taxpayer actually receives, before the end of the exchange period, replacement property worth at least 95 percent of the aggregate value of everything identified.
26 CFR 1.1031(k)-1The lookback for disqualified persons. Anyone who has acted as the taxpayer's employee, attorney, accountant, investment banker or broker, or real estate agent or broker within the 2 year period ending on the date the first relinquished property transfers is treated as the taxpayer's agent.
26 CFR 1.1031(k)-1Ownership period in the vacation home safe harbor, within which the unit must be rented at a fair rental for 14 days or more in each of two 12 month periods, with personal use no greater than 14 days or 10 percent of the days rented.
Rev. Proc. 2008-16How does Neurobird 1031 Exchange Qualified Intermediary work?
Open the exchange
The relinquished closing sets the transfer date, and both statutory clocks start from it rather than from when the file was created in the office.
Take the identification
A written, signed document delivered before the 45th day, tested against the three property rule and the 200 percent value cap as it is entered.
Close and account
Replacement closings draw against the held funds, and every movement in and out sits on the file that the taxpayer's accountant will use to prepare Form 8824.
1031 exchange qualified intermediary software questions, answered
Key terms
- What is a 1031 exchange qualified intermediary?
- A qualified intermediary is the person who enters into a written exchange agreement with the taxpayer, acquires the relinquished property, transfers it, and then acquires and transfers the replacement property. Holding the proceeds through that structure is what keeps the taxpayer out of actual or constructive receipt under the safe harbor in 26 CFR 1.1031(k)-1.
- What are the 45 day and 180 day rules?
- Both clocks start on the date the relinquished property transfers. The identification period ends at midnight on the 45th day. The exchange period ends at midnight on the earlier of the 180th day or the due date of the taxpayer's return for that year, including extensions, so a late year closing can shorten the second clock considerably.
How many replacement properties can be identified?
Three, without regard to value. More than three is allowed only if the aggregate fair market value of everything identified stays within 200 percent of the value of the relinquished property. Exceeding both tests is treated as having identified nothing, unless the taxpayer actually receives at least 95 percent of the identified value.
Who counts as a disqualified person?
The taxpayer's agent, and anyone in the related party categories the regulation lists. An employee, attorney, accountant, investment banker or broker, or real estate agent or broker who acted for the taxpayer within the 2 year period ending on the transfer date is treated as an agent, which is why the lookback belongs in the file rather than in someone's memory.
Does this hold client funds?
No. The funds stay where your qualified escrow account or qualified trust already holds them. This holds the record: the dates, the identification, the balances as reported, the disqualified person check and the documents that prove the arrangement was what it says it was.
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Where the requirement comes from
Primary sources, straight from the regulators.
- 26 CFR 1.1031(k)-1, treatment of deferred exchanges The identification and exchange periods, the three identification rules and the disqualified person test.
- 26 USC 1031, exchange of real property held for productive use or investment The statute itself, now limited to real property and excluding property held primarily for sale.
- IRS instructions for Form 8824, like kind exchanges How the exchange is actually reported, including related party rules and the basis carry forward.
- Rev. Proc. 2000-37, qualified exchange accommodation arrangements The parking safe harbor for reverse exchanges, where the accommodation titleholder comes in.
- Rev. Proc. 2008-16, dwelling units The 24 month, 14 day and 10 percent tests that decide whether a second home can be exchanged.
- IRS fact sheet on like kind exchanges The agency's plain language summary of what an exchange is and where taxpayers go wrong.
How much does Neurobird 1031 Exchange Qualified Intermediary cost?
Priced per firm because the safe harbor obligations sit with the intermediary rather than with the person typing. Exchanges, identifications, closings and documents are unlimited on the middle and upper tiers.
- Up to 25 open exchanges
- 45 and 180 day clocks
- Identification testing
- Document vault
- Unlimited exchanges
- Escrow reconciliation
- Disqualified person register
- Reverse exchange files
- Multiple entities
- Bonding and audit pack
- Referral source tracking
- Priority support
Get free early access
Early access means we model your exchange agreement, your identification form and your escrow reporting before you type anything, and the account stays free while we do it.
Straight answer on where this is: The software is in development. Nothing is purchasable today. Early access means you shape it and pay nothing while we build.
Prefer email? Write to office@neurobird.com and a person will reply. No autoresponder.