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 the entire transaction with tax and/or legal advisors.
Before closing, contact API to initiate the exchange transaction.
Enter into an “assignable” contract to sell the relinquished property.
API will prepare the exchange documents for the relinquished property sale.
API is assigned into the transaction as the seller and sale closes.
Both the 45-day identification period and exchange period begin.
Exchanger properly identifies replacement property by midnight of the 45th day.
Enter into an “assignable” contract to purchase replacement property.
After signing the replacement property contract, contact API.
API will prepare the exchange documents for purchase.
API is assigned into the transaction and purchase closes.
All the exchange requirements are met, the exchange is complete.