CPA and Attorney Consultation Prep Sheet

What to Bring to Your CPA Meeting

Documents

• Most recent 2-3 years of tax returns (complete, including all schedules)
  
• Schedule E for the property being sold (all years)
  
• Original purchase closing statement (HUD-1 / ALTA / Closing Disclosure) for the property
  
• Records of all capital improvements (invoices, receipts, permits)
  
• Current mortgage statement
  
• Depreciation schedule for the property (if available)
  
• Estimated sale price and any listing agreement
  
• Prior 1031 exchange documentation - Form 8824, exchange agreements - if this isn't your first exchange
  

Numbers to Have Ready

Questions for Your CPA

1. What is my estimated tax liability if I sell without exchanging? (Get this broken out by component: federal LTCG, depreciation recapture, NIIT, state)
2. Does a 1031 exchange make financial sense given my overall tax situation?
3. Are there any AMT (alternative minimum tax) considerations?
4. How will the exchange affect my depreciation schedules going forward?
5. If I've done prior exchanges, what is my cumulative carryover basis?
6. Should I consider a cost segregation study on the replacement property?
7. What's the filing deadline for Form 8824, and will you prepare it?
8. If I'm considering a DST, are there any passive activity loss considerations?
9. Do I need to adjust my quarterly estimated tax payments?
10. Are there state-specific 1031 rules I need to be aware of? (Some states, like California, require clawback reporting if you exchange out of state)
11. If California property is involved: Do I need to file FTB 3840 on an outbound exchange, and each year afterward until the deferred California gain is recognized?

Note: Confirm with your CPA the 45-day identification and 180-day exchange period deadlines, as they directly impact your tax filing timeline.

What to Bring to Your Attorney Meeting

Documents

• Current deed for the property
  
• Entity documents (LLC operating agreement, trust document, partnership agreement) if the property is held in an entity
  
• Current lease agreements with tenants
  
• Any pending legal issues affecting the property (liens, lawsuits, code violations)
  
• Draft exchange agreement from your Qualified Intermediary (QI) (for review)
  

Questions for Your Attorney

1. Is my current ownership structure correct for a 1031 exchange? (Same taxpayer must sell and buy)
2. If the property is in an LLC or trust, are there any issues with the exchange?
3. Should I review the QI's exchange agreement before signing?
4. Are there any title or deed issues that could complicate the exchange?
5. Do I need an assignment of the purchase/sale contract, and will you prepare it?
6. If I'm considering a reverse exchange, what entity structure is needed for the EAT?
7. Are there any estate planning considerations I should address before or during the exchange?
8. If the property is jointly owned, what are the implications for each owner's exchange?
9. Are there any partnership or entity restructuring options I should consider before selling?
10. What state-specific legal requirements apply to this exchange?

After Your Meetings: Action Items

Pro tip: Schedule both meetings before you list the property for sale. Discovering an entity problem, basis calculation error, or state-specific issue after you're under contract creates avoidable pressure. Preparation is free; surprises are expensive.