# 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.

- URL: https://neurobird.com/1031exchange/
- Product: Neurobird 1031 Exchange Qualified Intermediary Compliance Platform
- Niche: 1031 exchange qualified intermediary
- Buyer: qualified intermediaries and exchange accommodators
- Status: in development, open for early access
- Updated: 2026-08-22

## What Neurobird 1031 Exchange Qualified Intermediary does

- 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
- Record the disqualified person check, including the 2 year lookback on agents, at the point of engagement

## How it works

1. **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.
2. **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.
3. **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.

## From the source material

> 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).

Source: IRS fact sheet on like kind exchanges, https://www.irs.gov/pub/irs-news/fs-08-18.pdf

## Industry context

- **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. (source: 26 CFR 1.1031(k)-1, https://www.law.cornell.edu/cfr/text/26/1.1031%28k%29-1)
- **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. (source: 26 CFR 1.1031(k)-1, https://www.law.cornell.edu/cfr/text/26/1.1031%28k%29-1)
- **3 properties** The 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. (source: 26 CFR 1.1031(k)-1, https://www.law.cornell.edu/cfr/text/26/1.1031%28k%29-1)
- **95 percent** The 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. (source: 26 CFR 1.1031(k)-1, https://www.law.cornell.edu/cfr/text/26/1.1031%28k%29-1)
- **2 years** The 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. (source: 26 CFR 1.1031(k)-1, https://www.law.cornell.edu/cfr/text/26/1.1031%28k%29-1)
- **24 months** Ownership 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. (source: Rev. Proc. 2008-16, https://www.irs.gov/pub/irs-drop/rp-08-16.pdf)

## Pricing

- Solo desk: $199 per month
- Intermediary: $649 per month
- Institutional: $1,650 per month

## Questions

### 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.

## Sources

- [26 CFR 1.1031(k)-1, treatment of deferred exchanges](https://www.law.cornell.edu/cfr/text/26/1.1031%28k%29-1)
- [26 USC 1031, exchange of real property held for productive use or investment](https://www.law.cornell.edu/uscode/text/26/1031)
- [IRS instructions for Form 8824, like kind exchanges](https://www.irs.gov/pub/irs-pdf/i8824.pdf)
- [Rev. Proc. 2000-37, qualified exchange accommodation arrangements](https://www.irs.gov/pub/irs-drop/rp-00-37.pdf)
- [Rev. Proc. 2008-16, dwelling units](https://www.irs.gov/pub/irs-drop/rp-08-16.pdf)
- [IRS fact sheet on like kind exchanges](https://www.irs.gov/pub/irs-news/fs-08-18.pdf)

## Contact

- office@neurobird.com
- https://neurobird.com/