STEP 1
Always discuss your exchange with your tax advisor.
STEP 2
Contact BANKERS Escrow Corporation at 800-571-6595 immediately upon deciding to do an exchange to insure proper document preparation and coordination of all parties, including real estate agent, tax advisor & title company.
STEP 3
Make sure that the real estate contracts have the 1031 terminology in the contract that allows for the assignment & indicates your intent to do an exchange.
STEP 4
Sample Terminology for Real Estate Contracts [Taxpayer should consult their tax advisor or real estate professional as this is suggested language only]"Both the Seller and the Buyer hereto agree to cooperate with each other in a manner necessary to enable either party to qualify for a IRC Section tax deferred exchange at no additional cost or liability to either party. Either party’s rights and obligations will be assigned to BANKERS Escrow Corporation to facilitate such exchange."
STEP 5
Replacement property must be identified within 45 days of the closing of the relinquished property.
STEP 6
Acquisition of the replacement property must be completed within 180 days of the closing of the relinquished property.
