Simultaneous Exchange — Flow Map

Simultaneous Close · Same-Day 4 steps Forward = 6 steps · 2 clocks — Simultaneous collapses to 4 steps · T0 satisfied

Demo exchanger: Matt Belcher (synthetic) Relinquished: 456 Sunset Blvd, Los Angeles CA · $850,000 Replacement: 789 Oceanview Dr, Santa Monica CA · $920,000 Close date: Aug 14, 2026

FLOW MAP PROOF: A simultaneous exchange is the most structurally compressed §1031. Relinquished and replacement close the SAME day. The QI momentarily holds proceeds to break constructive receipt — the only reason a QI is needed at all. The ID hub is structurally ABSENT (no 45-day window; you already have the replacement). Steps 1 and 4 from the forward spine FUSE into a single same-day event. This page maps the collapsed 4-step sequence to its Vectr workflows and proves the hub engine must render from the type-config array — a hard-coded 6-tab list would show a dead/blocked ID tab, a compliance defect.

Capability legend

Deterministic Watchable Document-Generating Approval-Gated Structurally Absent

vectr-workflow-name = named Vectr workflow

4-Step Swim Lane

Timers satisfied at T0 ID hub omitted — no 45-day window

Phase 0 · Pre-close Engage / QI Setup Exchange agreement signed. QI account opened. Both closing attorneys put on notice.

Trigger Client engages before any close

Key documents Exchange Agreement · QI Designation Letter · Closing Coordination Notice

Both closings must be coordinated in advance. QI must be designated BEFORE the relinquished deed transfers. Late designation = constructive receipt.

Deterministic Doc-Gen

esign-orchestration

Step 1 · T0 (same day) Fused

Sales ⟶ Purchase Relinquished sells AND replacement closes on the SAME calendar day. QI momentarily holds the $850k wire to break constructive receipt before routing to the replacement closing.

Relinquished Sale 456 Sunset Blvd
$850,000 Green — Sales hub

Replacement Purchase 789 Oceanview Dr
$920,000 Purple — Purchase hub

QI constructive-receipt break

QI receives the $850k sale proceeds wire, holds momentarily, then forwards directly to the replacement closing. Exchanger never touches the funds. This is the entire legal purpose of a QI in a simultaneous close.

45-day / 180-day clocks: Technically start on the relinquished property closing but are effectively moot — replacement is acquired the same day. Rendered as is-safe/collapsed in the UI.

Deterministic Watchable Approval-Gated

escrow-funds-received escrow-wire-release

Step 2 · T0 (same day) Disbursement Confirm the atomic same-day wire chain completed. QI account reconciles to zero. Exchanger confirms receipt at replacement.

Wire sequence Buyer → QI → Replacement Closing

Amount $850,000

Boot (taxable portion) $0 — fully sheltered

Multi-party approval gate

Two authorized officers, proposer distinct from approver, must authorize before wire-release fires. Same Vectr multi-party gate as a delayed exchange — no shortcuts because the close is same-day.

Deterministic Approval-Gated

escrow-wire-release

Step 3 · Tax year IRS — Form 8824 Vectr generates the 8824 prefill from exchange data. CPA reviews and files. Gain deferred = realized − recognized.

Realized gain $312,000

Recognized gain (taxable) $0 — fully deferred

8824 deadline Apr 15, 2027 (tax year 2026)

Simultaneous simplification

Parts I and IV of the 8824 are simplified — no identification deadline date to enter (Part I Line 5 is the close date), no multi-property identification notice to attach. The Vectr 8824 template switches on the simultaneous variant when exchange-type = simultaneous.

Deterministic Doc-Gen

form-8824-generate

T0 — Same-Day Event Sequence (Aug 14, 2026)

Relinquished closes
9:00 AM

QI receives $850k
10:15 AM

Replacement closes
1:00 PM

QI wire released
1:45 PM

Exchange complete
EOD

All five events on the same calendar day. 45-day and 180-day clocks both start at the relinquished property closing (9:00 AM) and are satisfied at replacement close (1:00 PM) — elapsed: 4h. Deadline bar renders as is-safe / collapsed in the app UI.

Hub Tab Strip — What the App Renders for Simultaneous

Tabs are rendered from the type-config array, not a static 6-hub list. The ID hub is absent because the config omits it. A hard-coded list would show a phantom locked ID tab — both a UX and compliance defect (it implies an identification obligation that doesn't exist).

Correct — 4 tabs from type config

Engage / QI Sales + Purchase P Disbursement IRS

Defective — 6 hard-coded tabs (ID phantom)

Sales ID PHANTOM Escrow Purchase Disbursement IRS

Deadline Bar Rendering — Simultaneous

The sticky top deadline bar anchors to exchange.sale_closed (relinquished property transfer). For a simultaneous exchange both clocks are moot — render as is-safe/collapsed with the explanatory note. The second clock drawer is still wired up (the model does not special-case simultaneous) but reads "Timers satisfied at T0."

SIMULTANEOUS CLOSE Timers satisfied at T0

Progress fill uses the sales (green) accent since the active step at completion is the fused Sales+Purchase hub.

Forward vs Simultaneous — Structural Diff

Dimension	Forward (Delayed / Starker)	Simultaneous
Hub count	6 hubs (Sales → ID → Escrow → Purchase → Disburse → IRS)	4 hubs (Engage → Sales+Purchase → Disburse → IRS)
ID hub	Required — 45-day window, 3-property/200% rule, Identification Notice	Absent — no identification window; replacement already known and closed
Escrow hub	Standalone — funds parked in QI escrow between sale and purchase	Absent — QI hold is momentary (hours, not days); merged into fused step
45-day clock	Binding — starts at the relinquished property closing; exchanger must identify	Moot — starts and is satisfied same day; renders as is-safe/collapsed
180-day clock	Binding — must close replacement by Day 180	Moot — replacement closes same day; renders as is-safe/collapsed
Step 1 (Sales) and Step 4 (Purchase)	Separate tabs, separate Vectr workflows, separate closing dates	Fused into one hub card with a green/purple split; shared closing date
Vectr workflows	9 workflows incl. 45-day watcher, identification-notice-generate, one-eighty-day-deadline-guard, escrow-title-milestone-tracker	4 workflows — esign-orchestration, escrow-funds-received, escrow-wire-release, form-8824-generate
Form 8824 variant	Full — includes ID notice attachment, multiple-property rules, date of transfer	Simplified — no ID notice, single-property, Parts I and IV compressed
Constructive receipt risk	Managed by QI escrow account over days/weeks	Managed by QI momentary wire hold (hours); same legal analysis, compressed window

Vectr Workflow Catalog — Simultaneous (4 of 9 Forward Workflows)

esign-orchestration Drives the exchange agreement and closing document e-sign loop (DocuSign). Routes to all parties, enforces signing order, handles reminders, generates audit trail. Same workflow as forward — simultaneous adds no additional signatories.

escrow-funds-received Fires when the QI receives the proceeds wire from the relinquished closing. The 45/180-day deadline guards are already running from that same-day closing (which immediately resolves them for simultaneous). Triggers the Disbursement step. This event confirms the funds arrived; exchange.sale_closed is the statutory anchor.

escrow-wire-release Multi-party approval gate before the bank wires the proceeds to the replacement closing. Requires two authorized officers, proposer distinct from approver. The exchanger requests; the bank executes. For simultaneous the two closings are coordinated in advance, so this gate fires within hours of escrow-funds-received rather than days. Constructive-receipt firewall is identical.

form-8824-generate Generates the Form 8824 prefill from exchange data. For simultaneous, branches to the simplified variant: no identification notice attachment, no multi-property election, Parts I/IV use the same date for both transferred and acquired property. CPA reviews output before filing.

5 Forward Workflows Omitted — Why

forty-five-day-id-watcher — no identification obligation exists; omitting it from the config prevents a dead timer from firing on Day 45 against an already-complete exchange.

identification-notice-generate — no Identification Notice is required or generated; the fused step's document set is the exchange agreement + closing statements only.

one-eighty-day-deadline-guard — 180-day guard checks for replacement close; in a simultaneous exchange the close is same-day so the guard would fire and immediately succeed. Omitting avoids a redundant Vectr durability event.

escrow-title-milestone-tracker — no separate escrow/title milestone period exists; the QI hold is same-day, not a multi-week escrow. Including this workflow would create milestones that never arrive, hanging the deadline guard.

escrow-wire-routing (used in delayed to route proceeds to the escrow account) — not needed; proceeds flow directly QI→replacement closing in a same-day wire chain.

Correctness Traps — Simultaneous Exchange

Trap 1 — Phantom ID Tab (Engine Bug)

If the hub engine renders tabs from a static 6-item list rather than the type-config array, a simultaneous exchange shows a locked ID tab. This implies a 45-day identification obligation that does not exist. A confused exchanger who sees "ID — Step 2, Locked" may delay their exchange waiting for a step that will never unlock. The config array must explicitly exclude ID for exchange-type = simultaneous.

Trap 2 — escrow-title-milestone-tracker in Config

The Purchase hub in a forward exchange includes escrow-title-milestone-tracker in its workflow config. For a simultaneous exchange, if that workflow is not explicitly removed from the Purchase sub-config, it will wait for title milestones (earnest money, inspection contingency removal, final walkthrough) that are irrelevant to a same-day close, hanging the one-eighty-day-deadline-guard perpetually.

Trap 3 — Constructive Receipt Window Still Applies

The fact that both closings happen same-day does NOT eliminate the constructive receipt risk — it compresses the window. The exchanger must still NEVER touch the proceeds. The QI must be designated BEFORE the relinquished deed is recorded. Any simultaneous exchange where the exchanger's attorney wires proceeds directly to the replacement closing (bypassing the QI) fails the §1031 safe harbor entirely, even if both closings are same-day.

Trap 4 — Form 8824 Template Branching

The form-8824-generate Vectr workflow must branch on exchange-type. For simultaneous: Part I Line 5 (date property given up) and Line 6 (date replacement received) are the SAME date. Part III Line 15 (boot received) is $0 by definition. A forward template applied to a simultaneous exchange produces an incorrect 8824 with a blank Line 6 and a spurious multi-property election box.

Neela Proactive Script — Simultaneous Exchange

Neela's "what to do now" line is server-selected from a script keyed on (hubType, tabState, deadlineBucket). For simultaneous, the script omits all 45/180 urgency language and leads with coordination framing. Clock language is colored is-safe.

Good news — your clocks are already satisfied.

Neela · Simultaneous Exchange · Engage phase

Both closings happen the same day, so your 45-day and 180-day windows are satisfied at T0. Your one action before the close: confirm your QI is designated in the purchase agreement and that the replacement closing attorney has the QI wire instructions. The proceeds must route through the QI — if the buyer wires directly to the replacement closing, the exchange fails the safe harbor even on the same calendar day.

45-day clock: satisfied at T0 180-day clock: satisfied at T0 QI wire instructions: pending

Treas. Reg. §1.1031(k)-1(g)(4) — qualified intermediary safe harbor

Open1031 · Flow Map · Simultaneous Exchange

Synthetic demo data only — no NPI · Tax ID on file (synthetic) · All Hubs Reverse Map