Exchange Failed
Exchange Failed
Live
Neela — What happens now
I'm sorry — the 45-day window closed without a signed Identification Notice. Your exchange cannot be treated as tax-deferred under §1031. Your $850,000 in QI escrow is protected and will be returned to you through the multi-party refund process below. You'll owe capital gains tax on the $420,000 gain from the relinquished sale — your CPA can advise on installment treatment or other planning options.
Tax deferral not available
$850,000 safe in QI escrow
Refund awaiting approvals
Refund Process
5 steps · Two-officer approval required · Estimated 5–7 business days
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Boot Recognized
Complete
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Day 45 passed at 00:00 UTC. The durable deadline timer fired, blocked further exchange actions, and flagged the record as failed. QI operator Priya Anand was notified automatically.
Exchange Locked by QI
Complete
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QI officer Priya Anand reviewed the failure, confirmed no Identification Notice was on file, and locked the exchange record. All hub edits are now disabled. Failure notice delivered to exchanger.
QI Confirmation — Priya Anand · Aug 14, 2025 · 09:14 AM
"Exchange #1087 — 45-day identification deadline missed. No signed Identification Notice on file as of Day 45. Exchange locked for refund processing. Exchanger notified per QI engagement terms."
esign-orchestration · confirmed
document-collection-reminders · 3 sent
Refund Authorization — Two-Officer Approval
Needs Approval
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Two authorized officers authorize the refund wire, and the approver is never the proposer. The bank executes the wire; the platform transmits and records the signed instruction. A 24-hour cooling-off window applies after approval.
Two-Officer Approval Required
Neela guides and drafts. She never moves, holds, or releases your funds — that takes two authorized officers. The bank executes the wire below only after a second authorized officer approves the proposal in an independent login session. The proposer cannot approve their own proposal.
Proposed Refund Wire
Officer Approvals
TB
Priya Anand
QI Officer — Proposer
Proposer — cannot approve
SC
Sarah Chen
QI Supervisor — Approver
Pending
Payee Confirmation
MB
Matt Belcher
Exchanger — confirms the account on file
Payee check — pending
Your Action Required
Review the wire details above and confirm the account on file is yours. This payee confirmation is a fraud check, not an approval: it does not gate or release the $850,000 refund. A dispute goes to your QI's officers for fraud review; it does not hold, change or redirect the wire. This action is logged and cannot be undone.
24-Hour Cooling-Off + Final OFAC Screen
Locked
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After the second officer approves, a mandatory 24-hour cooling-off period applies before the bank executes the wire. A final OFAC SDN screen runs at the start of the window. Either authorized officer may revoke the approval during this period.
Refund Wire Executed
Locked
escrow-wire-release
The $850,000 refund wire executes via the QI escrow account. A wire confirmation and exchange closure report are generated. Exchange #1087 is archived. The exchanger receives email + document confirmation.
Tax Consequence — Capital Gains Due
Because this exchange fails to qualify under §1031, the realized gain on the sale of 456 Sunset Blvd is recognized in the tax year of sale. Estimated recognized gain: $420,000. Federal long-term capital gains tax (20%) + 3.8% NIIT + California state tax (13.3%) may apply. Consult your CPA immediately — IRS Form 8949 / Schedule D are due with your return. Neela can prepare a tax-impact summary for your advisor.