How to Perform a 1031 Exchange
Consider hiring professionals to assist you.. Find a buyer for the property you wish to sell.. Insert a special clause in the Purchase & Sale Agreement.
Steps
Consider hiring professionals to assist you.
Consider hiring professionals to assist you.
Find a buyer for the property you wish to sell.
Find a buyer for the property you wish to sell.
Insert a special clause in the Purchase & Sale Agreement.
Insert a special clause in the Purchase & Sale Agreement.
Select a Qualified Intermediary.
Select a Qualified Intermediary.
Enter into an Exchange Agreement with the Qualified Intermediary.
Enter into an Exchange Agreement with the Qualified Intermediary.
Identify a property or properties you wish to buy.
Identify a property or properties you wish to buy.
Direct your Qualified Intermediary to enter into a Purchase & Sale Agreement wit
Direct your Qualified Intermediary to enter into a Purchase & Sale Agreement with the seller of your replacement property.
File IRS Form 8824.
File IRS Form 8824.
Comply with applicable state-reporting requirements.
Comply with applicable state-reporting requirements.
Ensure the exchange is between "like-kind" properties.
Ensure the exchange is between "like-kind" properties.
Exercise caution when exchanging personal property.
Exercise caution when exchanging personal property.
Ensure the properties involved in the exchange satisfy 1031's usage requirement.
Ensure the properties involved in the exchange satisfy 1031's usage requirement.
Ensure the properties involved in the exchange are not excluded.
Ensure the properties involved in the exchange are not excluded.
Pay attention to the relevant deadlines.
Pay attention to the relevant deadlines.
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