1031 Exchanges

Intelligent exchange setup, deadline tracking, interest calculations, payment workflows, and more. Take on more deals without adding overhead.

Automate 1031 workflows

Run hundreds of concurrent exchanges, with deadline tracking, alerting, document management, fund segregation, audit trails and reporting.

Origination
DAY 0
Sale closes + funds arrive
LEGACY WORKFLOW
HUDSON WORKFLOW
Faxed PDF agreement, re-keyed into spreadsheet
Digitally receive and auto-extract key exchange details from PDF agreements
Funds land in master account
Spin up virtual sub-accounts in minutes
Ops moves funds to sub-account manually
Wired funds land directly in the sub-account
DAY 0-45
Identification window
CURRENT WORKFLOW
HUDSON WORKFLOW
Faxed PDF agreement manually reviewed and key dates re-keyed into spreadsheet
Automatic creation of ticklers at d-30, d-7, d-1 with notifications to QI and exchanger(s)
Identified property info collected via email
Identified properties captured via portal upload
Ops manually tracks d-7, d-1 cut-offs
Key milestones auto-tracked and updated
Servicing
DAY 45-180
Close window
LEGACY WORKFLOW
HUDSON WORKFLOW
Wire/ACH/check prepared, emailed or mailed to bank
Wire/ACH/check sent in one click
Dual-approval required (manual coordination)
Approval workflows enforced by system rules
Audit trail done manually
Full audit trail
DAY 180+
Close-out & reporting
CURRENT WORKFLOW
HUDSON WORKFLOW
1099-INTs done manually
1099-INTs auto-generated and distributed
Year-end recon of spreadsheet to statement
All reconciliation automatically handled
Audit prep (manual assembly)
Time-stamped audit export with one click

The Platform

The six pieces of infrastructure that handle 1031s

So the bank can focus on client relationships instead of 1031 workflows.

01 ARCHITECTURE
Virtual sub-accounts per exchange
02 DEADLINES
Auto 45/180-day ticklers
03 MONEY MOVEMENT
Routable virtual accounts move funds in & out
04 CONTROLS
Approvals engine
05 REPORTING
1099-INTs auto-generated
06 RELATIONSHIP
Branded customer portal

What QIs are looking for in banking partners

"The deadlines are where we have found the most potential liability. The 45 day, 180 day clock. Everyone in this room wants to make sure nothing slips."

"Spreadsheets, manual deadline tracking, comes from one source as a PDF, fax it over or it's emailed."

"We move money too many times. I don't like moving money. It's not my money. I'm responsible for it. And the less I touch it, the less I move it, the less chance for error."

– Operations Executive, Qualified Intermediary | from a partner discovery call

Frequently asked questions

How does Hudson track the 45-day and 180-day 1031 exchange deadlines?

Hudson automatically creates ticklers at day-30, day-7, and day-1 of the identification window, with notifications sent to the qualified intermediary and exchanger, and auto-tracks all key milestone cutoffs.

Can Hudson extract exchange terms directly from agreement PDFs?

Yes. Hudson digitally receives exchange agreements and auto-extracts key details such as parties, dates, and terms, rather than requiring manual re-keying from a faxed or scanned PDF into a spreadsheet.

How are 1031 exchange funds held and moved?

Hudson spins up virtual sub-accounts per exchange within minutes, and wired funds land directly in the sub-account rather than a shared master account, with wires, ACH, or checks sent in one click.

Does Hudson generate 1099-INTs and year-end reconciliation for exchanges?

Yes. 1099-INTs are auto-generated and distributed, and year-end reconciliation between the sub-ledger and bank statement is handled automatically instead of manually reconciling spreadsheets.

How are identified replacement properties tracked during an exchange?

Identified properties are captured through a portal upload rather than collected over email, and key milestones such as the 45-day identification cutoff are automatically tracked and updated.

What approval controls exist for exchange fund releases?

Dual-approval requirements are enforced by system rules rather than manual coordination, and every approval and disbursement decision is captured in a full audit trail.

What audit and reporting capabilities does Hudson provide for 1031 exchanges?

Hudson provides a time-stamped, one-click audit export, replacing manual audit-prep assembly, so qualified intermediaries can produce exam-ready records on demand.