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Forward 1031 Exchange · California QI

California Forward 1031 Exchange

Sell first, identify within 45 days, close on replacement within 180. The most common §1031 structure. Flat $799 fee, segregated escrow, $15M total insurance.

Start Your Exchange California 1031 Hub
$799 flat fee Same-day setup $15M total insurance

$5M Fidelity Bond + $10M E&O Insurance

Segregated Escrow Accounts

IRS-Compliant Exchange Documentation

How a California Forward Exchange Works

Three steps. Simple 1031 handles the QI mechanics. Your CPA handles the tax filings. Your title company handles the closing.

1

Engage Before Closing

Call us before your property sale closes. We open the exchange and prepare the agreement the same day. Once proceeds touch your hands, a §1031 is no longer possible.

2

Sell & Park Proceeds

At closing, exchange proceeds wire directly to our segregated escrow. You cannot constructively receive the funds. The 45-day identification clock starts the day of closing.

3

Identify & Close Replacement

Identify replacement property in writing within 45 days. Close within 180. We wire escrow funds directly to the replacement closing.

Is a Forward Exchange Right for You?

A short framework. Below that, links to the other three structures.

When It Fits

  • You are confident your property will sell on a defined timeline
  • You can identify replacement options within 45 days of closing
  • You can close on replacement within 180 days
  • You want the simplest, lowest-cost §1031 structure

When to Consider Another Structure

  • You need to lock in a specific replacement before selling — consider a reverse exchange
  • You need to build or improve replacement property — consider an improvement exchange
  • You want passive replacement without operating responsibility — consider a DST exchange

Other California Exchange Structures

Reverse Exchange

$1,500

Improvement Exchange

$1,500

DST Exchange

$799

California-Specific Considerations

How California treatment intersects with this forward exchange. Tax topics for your CPA — Simple 1031 handles QI mechanics only.

California Conforms to Federal 1031 Rules

California Revenue & Taxation Code Section 17024.5 generally conforms to IRC Section 1031 for like-kind exchanges of real property held for investment or business use. Federal 1031 rules — the 45/180-day deadlines, the like-kind requirement, the Qualified Intermediary requirement — all apply to California property.

The California Clawback (R&TC §§18032 & 24953)

When California property is exchanged into out-of-state replacement property, California does not permanently give up its taxing jurisdiction over the originally deferred gain. When the out-of-state replacement is eventually sold in a non-1031 transaction, California taxes that original California-sourced gain — even if the taxpayer has since moved out of state. Taxpayers with California-sourced deferred gain must file Franchise Tax Board Form 3840 annually to track the deferral. Simple 1031 is not a tax advisor and does not prepare Form 3840 — work with a California CPA familiar with the clawback before structuring your exchange.

Cross-State Exchanges Are Common

California investors frequently exchange into Nevada, Texas, Florida, and Arizona replacement property to simplify portfolio management or reduce ongoing state-tax exposure on rental income. These exchanges are fully federal-compliant and geographically like-kind. The California clawback still applies to the deferred gain — your CPA can model the long-term state tax picture.

Scope note: Simple 1031 LLC is a Qualified Intermediary. We do not provide tax, legal, or investment advice. Work with a qualified California CPA for state filings and tax planning, and a real estate attorney for legal questions.

California Forward Exchange Pricing

Flat fee. Same in California as anywhere. No hidden charges, no state surcharges.

Flat Fee. No Surprises.

California Forward Exchange

Sell first, identify in 45, close in 180

$799 /exchange
  • Segregated escrow — your funds are never commingled
  • 24/7 client portal — track every deadline in real time
  • Dedicated exchange coordinator
  • IRS-compliant exchange documentation
  • 45/180-day deadline tracking & alerts
  • Same-day exchange agreement preparation
  • $5M Fidelity Bond + $10M E&O Insurance
Get Started

Fee deducted from exchange proceeds after your California property closes. Nothing out of pocket to start.

California Forward Exchange Questions

If you do not find your answer here, call us at (725) 224-5008.

Yes. Under R&TC §§18032 and 24953, if your replacement property is out-of-state and you eventually sell it in a non-1031 transaction, California taxes the originally deferred California-sourced gain. FTB Form 3840 is filed annually by your CPA to track the deferral. Simple 1031 does not prepare or file Form 3840.
Yes. All 50 US states are like-kind to California real estate for federal §1031 purposes. Common destinations are Nevada, Texas, Arizona, and Florida. Your CPA can model the long-term California clawback impact on the deferred gain.
Same day. We send the exchange agreement electronically within minutes of your call. The IRS clock itself only starts when your relinquished property closes.
No. Under Treasury Regulation §1.1031(k)-1(k), a party you have had a working relationship with in the prior two years — including your attorney or CPA — is a disqualified person and cannot hold exchange proceeds. The IRS requires an independent Qualified Intermediary.
Your exchange proceeds are held in segregated escrow — never commingled with operating funds or other clients' exchanges. Simple 1031 carries a $5M Fidelity Bond and $10M Errors & Omissions Insurance, and our escrow accounts use FDIC-insured banking partners.
Simple 1031 charges a flat $799 for the Forward exchange. Same flat fee in California as anywhere else — no state surcharge, no hourly billing. Fee deducted from exchange proceeds after closing.
No. Simple 1031 is a Qualified Intermediary, not a tax advisor. Your CPA prepares Form 8824 and any state-specific filings. We provide the exchange documentation your CPA needs.

Start Your California Forward Exchange

Tell us about your California property. We will respond within one business day.

Your information stays confidential. We respond within one business day. Or call now: (725) 224-5008.

Ready to Start Your California Forward Exchange?

Engage Simple 1031 before you close. Flat $799 fee. Nothing out of pocket to start.

Start Your Exchange Call (725) 224-5008