JUNE 2024 | 43 THE OKLAHOMA BAR JOURNAL Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff. TYPES OF EXCHANGES Simultaneous exchanges involve a same-day closing such that the taxpayer never actually receives relinquished property proceeds, which are not strictly required to be deposited with a QI (except in the cases of deferred or reverse exchanges, which are discussed later). However, IRS regulations expressly state that using a QI provides safe harbor for a simultaneous exchange.5 Deferred exchanges, sometimes called delayed exchanges, are what most investors and clients will have in mind when considering a 1031 exchange; a relinquished property is sold and proceeds are held by the QI, the taxpayer identifies potential suitable replacement properties within 45 days, and closing on the replacement property must occur within 180 days of the relinquished property closing.6 Reverse exchanges are simply a deferred exchange conducted in reverse order. In a reverse exchange, the replacement property is obtained and title is held by the taxpayer before closing on a relinquished property divestiture.7
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