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1031 Tax Exchange Checklist
1.) Consult your intermediary regarding your specific property and situation.
2.) Sell your relinquished property and be sure to notify your buyer in writing that you intend to complete a 1031 tax exchange.
3.) Begin your exchange process with your intermediary as soon as you have your property under contract.
4.) You intermediary should be preparing your exchange documents for the relinquished property sale.
5.) Sign your exchange documents.
6.) Close on the sale of your relinquished property. The proceeds should be held in a trust account.
7.) You now have 180 days to complete your exchange (or until the date your tax return is due, whichever is earlier).
8.) Identify your replacement property.
9.) Purchase your replacement property. Again, you must notify the sellers in writing that you are completing your 1031 exchange.
10.) Again, your intermediary will begin your paperwork process.
11.) Sign your exchange documents.
12.) Close on the purchase of your replacement property.
13.) If all exchange requirements have been met, you will have sold your property tax free.
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What is the Boot Test?