Reverse Exchange Hub — Reference Section
Design System v2 · Standalone · Rev. Proc. 2000-37Reverse Exchange Hub
Buy your replacement property first, then sell the relinquished — the exchange runs in reverse order. More complex & more expensive than a forward exchange
In a standard (forward) 1031 exchange you sell first, then buy. In a reverse exchange you buy the replacement property first, then sell your relinquished property later — the order is reversed. Because you can't own both properties at once under §1031, an independent party called an EAT (Exchange Accommodation Titleholder — a single-member LLC) takes title to the replacement and "parks" it for you. Three hard deadlines apply once the EAT acquires: sign the QEAA agreement within 5 business days, identify your relinquished property within 45 days, and complete the full exchange within 180 days.
Reverse exchanges are more complex and more expensive than forward exchanges
Expect higher QI fees, EAT LLC formation costs, additional title/escrow fees, and more legal coordination. The EAT must be a true independent accommodator — Open1031 structures this as a single-member SPE LLC on your behalf. If you have not yet acquired the replacement property, a forward exchange (sell first, then buy) is simpler and lower cost.
Sign QEAA Agreement
Within 5 business days of Day 0The Qualified Exchange Accommodation Agreement (QEAA) is the written contract between you and the EAT that locks in the parking arrangement. It must be executed before Day 0 + 5 business days or the Rev. Proc. 2000-37 safe harbor is lost — which means your entire exchange could be disqualified.
Day 0 = Jun 6, 2026 → QEAA deadline: Jun 13, 2026 (5 business days)
Identify Relinquished Property
Within 45 calendar days of Day 0You must formally identify the property you plan to sell (the relinquished) within 45 calendar days of Day 0. In most reverse exchanges the relinquished property is already known — this step locks it in writing for the IRS record.
Day 0 = Jun 6, 2026 → 45-day deadline: Jul 21, 2026
EAT Deeds Replacement to You + Sell Relinquished
Within 180 calendar days of Day 0The full exchange must close within 180 days of Day 0: the EAT deeds the replacement property to you, you sell your relinquished property to the buyer, and any EAT loan is repaid. Both events must happen within this single 180-day window — there is no extension.
Day 0 = Jun 6, 2026 → 180-day deadline: Dec 3, 2026
(Belcher Exchange LLC)
after relinquished sells
Your QI forms (or arranges) Belcher Exchange LLC (a single-member SPE) as the single-purpose EAT. The EAT acquires 789 Ocean Ave on Day 0 using funds you provide. The EAT holds title in the parking period while you sell 456 Sunset Blvd. Once both closes are complete, the EAT deeds the replacement to you and is wound down.
Review all three deadlines and the EAT structure above before confirming.
Reverse Exchange Hub
EAT acquired 789 Ocean Ave on Day 0 — Jun 6, 2026. Clocks are running.
Sign the QEAA now — you have 4 business days
The Qualified Exchange Accommodation Agreement (QEAA) is your binding contract with the EAT. If it is not executed by Jun 13, 2026, the Rev. Proc. 2000-37 safe harbor is lost and your §1031 exchange may be disqualified. This is the most time-sensitive deadline in the entire exchange.
Qualified Exchange Accommodation Agreement (QEAA)
Matt Belcher ↔ Belcher Exchange LLC (EAT) · Day 0: Jun 6, 2026
Belcher Exchange LLC is acting as your EAT — an independent titleholder, not your agent
The EAT holds title to 789 Ocean Ave for your benefit during the parking period (up to 180 days)
You are responsible for identifying and selling your relinquished property within the 45 and 180-day windows
The EAT will deed the replacement property to you once your relinquished sale closes
E-sign the QEAA above to enable this confirmation.
Reverse Exchange Hub
EAT is parking 789 Ocean Ave · QEAA signed Jun 9, 2026 · 163 days of parking remaining
789 Ocean Ave is parked with Belcher Exchange LLC (EAT)
The EAT holds title. Parking started Jun 6, 2026 · 163 days remaining · QEAA in effect
Parking expires
Dec 3, 2026
456 Sunset Blvd, Los Angeles, CA 90028
Relinquished property · FMV: $850,000
Seeded from your Sales Hub profile
456 Sunset Blvd sale pending
List price: $850,000 · Must close by Dec 3, 2026 (180-day deadline)
Upload the signed purchase agreement when your buyer is under contract
Submit your written relinquished property identification above to enable this confirmation.
Reverse Exchange Hub
Both closes completed within 180 days · EAT wound down · Exchange complete
Reverse exchange complete — all three deadlines met
Both closes occurred within the 180-day window. The EAT has deeded 789 Ocean Ave to Matt Belcher and Belcher Exchange LLC has been wound down. Capital gain deferral preserved.
IRS Form 8824 — pre-filled by Neela
Attach to Matt Belcher's federal return for tax year 2026 · Reports the reverse exchange under §1031
Qualified Exchange Accommodation Agreement (QEAA)
Signed Jun 9, 2026 · Rev. Proc. 2000-37 §4.02(3)
Written Relinquished Property Identification Notice
Submitted Jun 29, 2026 · IRS §1031(a)(3)(A)
EAT Deed — 789 Ocean Ave Transfer to Matt Belcher
Recorded Nov 5, 2026 · Belcher Exchange LLC → Matt Belcher
Relinquished Settlement Statement (456 Sunset Blvd)
Closed Nov 4, 2026 · Sale price $850,000
Download IRS Form 8824 to enable this final confirmation.