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  • Form 1031 Filliable

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1031 Definitions To assist you in understanding the concepts of 1031, here is a glossary of the terms used in exchanging. Basis. This is the starting point for determining the gain/loss in the transaction.

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Under § 1031(f)(1), a taxpayer exchanging like-kind property with a related person cannot use the nonrecognition provisions of § 1031 if, within 2 years of the date of the last transfer, either the related person disposes of the relinquished property or the taxpayer disposes of the replacement property.

To have a valid 1031 exchange, a qualified intermediary (“QI”) must be assigned the seller's rights to proceeds under the contract and transfer the relinquished property on behalf of the seller, pursuant to an exchange agreement. See Treas. Reg. §1.1031(k)-1(g)(4)(iii)-(vi).

You must report an exchange to the IRS on Form 8824, Like-Kind Exchanges and file it with your tax return for the year in which the exchange occurred. If you do not specifically follow the rules for like-kind exchanges, you may be held liable for taxes, penalties, and interest on your transactions.

The 1031 exchange is really a simple process. Think of it this way. You're going to sell a property, you're going to buy a property, and we're going to step into the middle of the whole thing and turn it into an exchange.

How to do a 1031 exchange Step 1: Identify the property you want to sell. ... Step 2: Identify the property you want to buy. ... Step 3: Choose a qualified intermediary. ... Step 4: Decide how much of the sale proceeds will go toward the new property. ... Step 5: Keep an eye on the calendar. ... Step 6: Be careful about where the money is.

Steps to Improving Property Already Owned Sell your property. ... Contact Equity Advantage, Inc. ... Sign the Exchange Agreement stating that Equity Advantage Inc. will serve as your 1031 Accommodator. ... Closing occurs. ... The escrow company will forward the sale proceeds to Equity Advantage, Inc. ... Identify your Replacement Property.

Steps to Successfully Complete a 1031 Exchange Identify Your 1031 Exchange Objectives & Property Search. ... Find a Qualified Intermediary. ... Add a Cooperation Clause in Your Sales Contract. ... Provide a Copy of the Contract to the Intermediary. ... Funds for the Exchange are Wired to the Exchange Account.

A successful 1031 exchange isn't a do-it-yourself project. You must follow IRS rules to realize the tax deferral benefits and you'll need a middle person, called a qualified intermediary (QI).

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232