1031 Exchange Planning Points

1. Consult with your tax advisor and Qualified Intermediary prior to selling your investment property.

2. Instruct your attorney or real estate broker to insert a 1031 cooperation clause in the purchase and sale agreement. Contact us for sample cooperation language.

3. Pay attention to the 45/180 day deadlines as failure to observe these timeframes will invalidate your exchange. Legitimate Qualified Intermediaries will not backdate documents to accommodate late transactions.

4. To completely avoid tax on your exchange, you must apply all the equity from the property being sold to the purchase of the new property, and the new property must be of equal or greater value.

5. Do not retitle property immediately prior to an exchange as that may raise qualified use issues with the IRS.

6. Do not purchase the replacement property prior to selling the relinquished property, unless you plan on entering into a reverse exchange.

Call the knowledgeable exchange professionals at All States 1031 at
1-877-395-1031 for a complimentary consultation regarding your specific investment objectives.