Buy before you sell
In a reverse exchange, an exchange accommodation titleholder (EAT) takes title to the replacement property first, so you can acquire it before selling your current property.
Same clocks apply
You still have 45 days to identify the property you'll sell and 180 days to complete the exchange. Reverse exchanges are more complex and costlier than a standard forward exchange.
When it makes sense
Useful in hot markets where you can't risk losing the replacement property while waiting for your sale to close.
Frequently asked questions
Can I buy before I sell in a 1031?
Yes, via a reverse exchange using an exchange accommodation titleholder.
Are reverse exchanges more expensive?
Yes — they're more complex and carry higher fees than a standard forward 1031.
Sources
Educational information and estimates only. Not tax advice. Tax rules change and vary by situation; consult a qualified tax professional before acting.