Get Started with a 1031 Reverse Exchange in 5 Easy Steps
Getting started with a 1031 reverse exchange: Contact Exchange Resource Group immediately upon deciding to do a 1031 Reverse Exchange to ensure proper document preparation and coordination of all parties, including real estate agent, tax advisor and title company.
Discuss your reverse exchange with your tax advisor.
Make sure that the real estate contracts have the 1031 Reverse Exchange terminology in the contract that allows for the assignment & indicates your intent to do an exchange.
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 1031 tax-deferred exchange at no additional cost or liability to either party. Either party’s rights and obligations will be assigned to Exchange Resource Group to facilitate such exchange.”
New property must be identified within 45 days of the closing of the old property.
Acquisition of the new property must be completed within 180 days of the closing of the old property.