1031 Exchange Checklist
This 1031 exchange checklist is intended to provide a brief overview of the steps involved in an IRC Section 1031 tax-deferred exchange and when Asset Preservation, Inc. (API) should be contacted throughout the process. This checklist does not address all issues involved in an exchange. Please read all of the exchange documents prepared by API.
REVIEW:
Review the entire transaction with tax and/or legal advisors.
CONTACT API:
Before closing, contact API to initiate the exchange
transaction.
SALE CONTRACT:
Enter into an “assignable” contract to sell the relinquished
property.
EXCHANGE SET-UP:
API will prepare the exchange documents for the relinquished property
sale.
RELINQUISHED PROPERTY CLOSES:
API is assigned into the transaction as the seller and sale
closes.
IDENTIFICATION PERIOD:
Both the 45-day identification period and exchange period
begin.
PROPERTY IDENTIFIED:
Exchanger properly identifies replacement property by
midnight of the 45th day.
PURCHASE CONTRACT:
Enter into an “assignable” contract to purchase replacement
property.
CONTACT API:
After signing the replacement property contract, contact API.
EXCHANGE PAPERWORK PREPARED:
API will prepare the exchange documents for purchase.
REPLACEMENT PROPERTY CLOSES:
API is assigned into the transaction and purchase closes.
COMPLETION
All the exchange requirements are met, the exchange is complete.
Comments
Post a Comment