Below, you’ll find an overview of the steps involved in a successful Standard 1031 Exchange (for the Reverse 1031 Exchange timeline, please call our office). Feel free to get a general idea of the steps below, but remember to schedule a consultation to go over your specific situation and make sure you’re not missing any critical due dates or actions. We want you to tell us your story so we can help navigate your exchange!
Set up your exchange BEFORE you close on the sale of your property through our website.
Your documents are instantly available and automatically sent to your closing agent. You are ready to go!
Sign your exchange docs and return the Qualified Intermediary (QI), which is assigned as the seller as required by the IRS. When the closing occurs the funds will be sent to your account. Your signature will be required before the bank can move your funds. You will receive an account ledger from the QI.
Now that your exchange has been set up, you’re all set to close on your sale!
We can help you get your ideas together and point you in the right direction. We can also help you get a pre-qualification letter from a bank so your seller will be more inclined to work with you.
Your countdown begins. You have 45 days to identify your replacement properties. Start reviewing your replacement property choices now.
You might want to buy something that needs repairs and use money from your exchange account to fix it up. The improvements will be counted towards the amount you spend. This will help you get back to the sales price of what you sold-an IRS rule to save all taxes!
You will need to send us a letter indicating properties you may purchase. The letter will be with your exchange package and you should call us to go over options to identify.
Remember to ask us for an Exchange Ledger to provide your accountant. The accountant will need to report the exchange on our income taxes using form 8824.
If all the exchange requirements are met, you’ve successfully sold your real estate tax-free. We can’t wait to help you do it again!
I agree to terms & conditions provided by the company. By providing my phone number, I agree to receive text messages from the business.
All Rights Reserved. Copyright 2024.