1031 Exchange Agreement Form For Export In Miami-Dade
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Navigating the 1031 Exchange Process in Florida Step 1: Plan and Consult. Before selling your property, assess your investment objectives. Step 2: Sale of Relinquished Property. Step 3: Identify Replacement Property. Step 4: Buy the Replacement Property. Step 5: Reporting and Compliance.
How to Do a 1031 Exchange Choose a qualified intermediary to coordinate the exchange. Sell your current real estate property. You have 45 days to identify potential replacement properties. You have 180 days to close on a replacement property. File IRS Form 8824.
A Qualified Intermediary, or QI, is an independent third party to the transaction whose function is to prepare the documents necessary to create the exchange, as well as to act as the independent escrow agent for the exchange funds.
Section 1031(f) provides that if a Taxpayer exchanges with a related party then the party who acquired the property in the exchange must hold it for 2 years or the exchange will be disallowed.
Appraisals are an integral part of the 1031 exchange process as they provide an unbiased estimate of the property's value.
Your settlement agent is required to submit the 1099-S upon the completion of every sale and Form 8824 is your way of notifying the IRS that you did an exchange on that sale and may have deferred your tax liability.
