How Do I Complete a 1031 Exchange Application?

When considering a 1031 exchange, you should complete the following steps to apply and ensure you get the benefits of the exchange:

• Always begin by working with your financial and legal advisors to determine what assets you hold and whether you will qualify for the 1031 benefit. Be sure that the new property you are considering will save you money in the long run.

• Contact your real estate agent, if you have one, and alert that agent to your intent to apply for a 1031 exchange.

• Consider hiring a professional qualified intermediary to simplify the process of completing a 1031 exchange. If you do plan to hire a professional qualified intermediary, you should do so at this point.

• With the help of your qualified intermediary, you need to gather and prepare documentation about the property owner and current or relinquished property. Some necessary documentation includes contact and identification documents for you, the property owner.

• Complete the 1031 application, including submitting the documents prepared and wait for processing.

• You have a 45-day period in which to identify the new property in which you plan to reinvest the income from the sale of your current property and begin the purchase process.

• Submit relevant documents for the new, replacement property before a deadline of 180 days.