Forward Exchange — Flow Map

Exchange Flow Sequence 6 hubs · 2 statutory clocks · identify REPLACEMENT properties

Sales

Relinquished property sale + assignment to QI

Deadline anchor: exchange.sale_closed

Escrow

Proceeds into QI escrow account

45-day replacement property identification

45-day clock · Day 0–45

Purchase

Replacement property acquisition Day 46–180

180-day clock · Day 46–180

Disbursement

QI escrow wire to replacement purchase closing

IRS

Form 8824 like-kind exchange report

Day 0 — Sale close Day 0 — 45-day clock starts Day 45 hard deadline Day 46 — replacement window Day 180 hard deadline Tax filing

Deadline anchor: Both the 45-day and 180-day clocks bind to exchange.sale_closed (the moment the relinquished property transfers, not the later moment proceeds land in QI escrow) — not to the active hub tab. The ID tab is the user's active step while the closing event silently arms both timers.

Statutory Deadline Clocks IRC §1031 + Treas. Reg. §1.1031(k)-1 · demo scenario: sale closed Jun 1, 2026

45-Day ID Deadline

43 days remaining

Relinquished property transferred Jun 1, 2026 · Identification Notice due Jul 16, 2026

Anchored on
exchange.sale_closed
Treas. Reg. §1.1031(k)-1(b)

180-Day Closing Deadline

174 days remaining

Replacement property close due Nov 28, 2026 · or tax return due date if earlier

Anchored on
exchange.sale_closed
IRC §1031(a)(3)(B)

Key IRS Compliance Rules — Forward Exchange

3-Property Rule: exchanger may identify up to 3 replacement properties regardless of value.

200% Rule: unlimited properties if aggregate FMV ≤ 200% of relinquished FMV ($1.7M cap for this exchange).

95% Rule: fallback — may identify any number if exchanger acquires 95%+ of aggregate FMV.

No constructive receipt: exchanger must not have access to funds at any time — QI holds in segregated escrow.

Same taxpayer: exchangor on deed of relinquished = exchanger on deed of replacement.

Like-kind: both properties must be real property held for investment or productive use in a trade/business.

Vectr Workflow Coverage — Per Phase Every automation step, trigger, approval gate, and document

Phase 0 — Exchange Initiation

Day 0

DET

kyc-orchestration

Persona identity verification — photo ID + liveness check

Trigger: exchange-created Gate: QI reviews result KYC report PDF

DET

qi-engagement-generate

QI Engagement Letter generated and sent for e-sign

Trigger: exchange-created Gate: exchanger e-sign QI Engagement Letter

DET

ofac-sdn-screening

OFAC SDN + CFTC screening on exchanger and entities

Trigger: exchange-created + profile-update Gate: QI clears any hit OFAC screening report

Phase 1 — Sales (Relinquished)

Day 0–45

APPR

esign-orchestration

Exchange Agreement + Assignment of Contract sent via DocuSign

Trigger: sign-action in Sales Hub Gate: exchanger + QI counter-sign Exchange Agreement · Assignment

DET

escrow-wire-routing

Routes closing proceeds to the QI segregated escrow account

Trigger: closing-event webhook Gate: QI officer authorizes Wire instruction letter

WATCH

escrow-funds-received

Confirms proceeds received into QI segregated escrow

Trigger: bank webhook / Plaid event Gate: QI confirms receipt Both deadline clocks already run from exchange.sale_closed Escrow receipt confirmation

Phase 2 — ID (45-Day Window)

Day 0–45 hard deadline

WATCH

forty-five-day-id-watcher

Durable timer — Day 30 reminder, Day 40 escalation, Day 44 QI alert, Day 45 blocks exchange

Trigger: exchange.sale_closed Day 45 hard block

APPR

identification-notice-generate

Signed IRS-compliant Replacement Property Identification Notice

Trigger: identification confirmed Gate: exchanger e-sign Replacement Property ID Notice

Phase 3 — Purchase (Replacement)

Day 46–180 hard deadline

WATCH

one-eighty-day-deadline-guard

Durable 180-day guard — Day 150/170 warnings, Day 179 blocks disbursement

Trigger: exchange.sale_closed Day 180 hard block

DET

escrow-title-milestone-tracker

Tracks escrow open to title search to closing disclosure to deed recorded

Trigger: escrow saved

Phase 4 — Disbursement

Day 46–180

APPR

escrow-wire-release

QI escrow wire to replacement purchase closing — atomic multi-party approval gate. No single person can execute.

Trigger: closing event + QI approval Gate: two authorized officers (proposer ≠ approver) Wire confirmation · HUD/ALTA statement

Phase 5 — IRS Forms & Archive

Day 180+

APPR

form-8824-generate

Pre-fills IRS Form 8824 from exchange record — §1031(d) basis computation automated

Trigger: all acquisition data complete Gate: exchanger + CPA review; QI counter-sign IRS Form 8824 PDF

DET

final-audit-archive

Completeness audit, ZIP archive export, 7-year retention schedule

Trigger: exchange-completion event ZIP archive · completeness report

Cross-Cutting Workflows Active across all phases for every forward exchange

DET

wizard-state-autosave

Persists all form state to Supabase on every field change (debounced 5 s). DB = source of truth.

DET

dashboard-kpi-update

Recomputes progress %, hub tile states, and deadline badge colors hourly + on every state change.

DET

compliance-risk-checks

Validates data completeness, step ordering, and flags compliance risks on section submit + nightly.

DOC

document-verification-merge

Merges uploaded documents with seeded verified docs, recomputes document statuses on every upload.

WATCH

esign-orchestration

Tracks DocuSign envelope status across all docs, sends reminders daily at 10:00, marks complete.

DET

document-collection-reminders

Mon/Wed/Fri 09:30 nudges while required document checklist is incomplete.

Workflow Type Legend

DET

Deterministic

Rule-engine automation — no human input required

WATCH

Deadline Watcher

Durable IRS timer — fires at regulated intervals and blocks on expiry

APPR

Approval Gate

Multi-party human authorization required — constructive-receipt firewall

DOC

Document

Generates and manages PDF documents + e-sign envelopes

Correctness Traps — Forward Exchange

Clock anchors to the relinquished-property closing, not active hub tab. The ID tab is the user's active step; both clocks were armed when the relinquished property transferred, not when escrow later confirmed receipt of funds. Never re-anchor on tab activation.

ID hub lists REPLACEMENT properties (inverse of reverse exchange which lists relinquished). Identification Notice document must use the replacement bodyVariant.

Wire release is multi-party. escrow-wire-release requires two authorized officers, proposer distinct from approver — no single person can execute. The exchanger requests; the bank executes. This is the constructive-receipt firewall.

Documents Generated — Forward Exchange 10 documents end-to-end

Document Phase Generating Workflow Signature

QI Engagement Letter

Phase 0

qi-engagement-generate

Exchanger + QI

OFAC Screening Report

Phase 0

ofac-sdn-screening

QI clears hits

Persona KYC Report

Phase 0

kyc-orchestration

QI clears hits

Exchange Agreement

Phase 1 · Sales

esign-orchestration

Exchanger + QI

Assignment of Contract (Relinquished)

Phase 1 · Sales

esign-orchestration

Exchanger + QI

Wire Instruction Letter

Phase 1 · Escrow

escrow-wire-routing

Escrow Receipt Confirmation

Phase 1 · Escrow

escrow-funds-received

Automated

Replacement Property Identification Notice

Phase 2 · ID

identification-notice-generate

Exchanger

HUD / ALTA Settlement Statement

Phase 4 · Disburse

escrow-wire-release

Automated

IRS Form 8824 — Like-Kind Exchanges

Phase 5 · IRS

form-8824-generate

Exchanger + CPA + QI

Automation Coverage Summary

Named Vectr Workflows

forward exchange total

Hard IRS Deadlines

45-day ID · 180-day close

Human Approval Gates

KYC · wire release · e-sign · OFAC

Money Movement Steps

proceeds in · outbound wire — both multi-party

Documents Generated

end-to-end per exchange

Steps Requiring Human Intuition

fully automatable

This is the Baseline — Every Other Exchange Type Transforms It

Reverse: Reorders (Purchase before Sales), re-anchors on EAT deed-recording, adds 3 new steps + a 5-business-day QEAA clock.

Improvement: Reverse spine + 1 inserted Construction draw-tracking step; 180-day guard adds cumulative-value predicate.

Simultaneous: Fuses Sales + Purchase into one same-day step; omits the ID hub entirely — proves the engine can drop a step.

DST: Same sequence; Purchase uses dst-subscription bodyVariant (no escrow/title milestones) + optional 721-UPREIT exit.