TEN CONSIDERATIONS WHEN COMPLETING A 1031 EXCHANGE…
1. The Taxpayer/Exchangor is advised to consult with his or her CPA or Tax Attorney.
2. The Exchange Addendum should be added to the Contract to Buy or Sell Real Estate.
3. Qualified Intermediary (Q.I.) should be notified.
4. When the title work is ordered, add the Q.I. to delivery.
5. Establish the Exchange Agreement with the Q.I.
6. Inform the Q.I. of the closer or contact with the title company.
7. Attend the closing and make sure that the proceeds go directly to the Q.I.
8. Send your list of Identified Replacement Property(ies) to the Q.I. by the 45 day deadline.
9. Send the Assignment of Contract Replacement Property to the Q.I. prior to closing the Replacement Property.
10. Make sure that the Q.I. has transferred the proceeds to the closer of the Replacement Property and that there is no cash back to the buyer.