23 articles
Planning & Execution
Step-by-step guides for exchange timelines, identification strategies, closing costs, and paperwork.
Start hereThe essential introduction to this subject.
Before the sale
How to Choose a Qualified Intermediary (and What to Watch For)
A QI (also called an accommodator or facilitator) performs four critical functions
Wire Fraud Prevention for 1031 Exchanges
1031 exchanges involve large wire transfers, making them prime targets for fraud. Hackers impersonate real estate professionals to redirect millions.
Refinancing Before or After a 1031 Exchange
Learn the timing and tax implications of refinancing a property before or after a 1031 exchange. Avoid step transaction doctrine and plan your refi strategically.
QI Fund Safety: Segregated Accounts, Controls, and Red Flags
Your QI holds potentially millions in exchange funds. Learn how those funds should be protected, what insurance and controls matter, and red flags that suggest unsafe practices.
Exchange Language in Purchase and Sale Agreements
Learn how to add 1031 exchange language to your purchase and sale agreements. Includes sample clauses that protect your exchange without burdening the other party.
Identification & deadlines
1031 Exchange Deadline Extensions for Disasters (And Why Weekends Don't Matter)
The 45-day and 180-day 1031 deadlines are firm. Weekends and holidays don't extend them. But disaster relief from the IRS is real. Learn when it applies and how to verify.
How to Write a 1031 Identification Letter (Template + Tips)
Learn exactly what a 1031 identification letter must contain and get sample language for all three identification rules. Includes best practices for delivery and documentation.
Can't Find Replacement Property? Backup Identification Strategies
What happens if you can't find suitable replacement property within 45 days? Learn proven strategies for meeting identification deadlines and using DSTs as a safety net.
Closing & reporting
1031 Exchange Closing Costs: What Exchange Funds Can Pay
Learn which closing costs can be paid from your 1031 exchange funds without creating boot. Includes categorized breakdown and escrow instructions for your closing officer.
How to Fill Out IRS Form 8824 (Worked Example + Common Mistakes)
Step-by-step guide to completing IRS Form 8824 with a worked example. Includes common mistakes, reporting tips, and a pre-tax checklist.
Form 8824 Mistakes and Audit Triggers
Form 8824 is where you report your 1031 exchange to the IRS. Mistakes on this form are common and can trigger audits. Learn what the IRS looks for and how to avoid red flags.
Earnest Money Deposits in a 1031 Exchange
Learn how earnest money deposits work in a 1031 exchange. Three payment structures, how to avoid constructive receipt, and what happens to EMD if the deal falls through.
Complex exchanges
Capital Improvements and 1031 Exchanges: What Counts as Basis?
Your adjusted basis is the foundation of every tax calculation in a 1031 exchange. The formula
1031 Exchange Into NNN (Triple Net) Property
In a triple-net (NNN) lease, the tenant pays three categories of operating expenses on top of base rent: property taxes, building insurance, and maintenance/repairs.
1031 Exchanges With LLCs, Partnerships, and Multiple Owners
The "same taxpayer" rule requires the entity that sells to be the entity that buys. Learn how LLCs and partnerships affect 1031 exchanges and what mistakes to avoid.
Partial 1031 Exchange: Take Some Cash and Still Defer Taxes
You don't have to reinvest every dollar from your property sale to use a 1031 exchange. Learn how to take cash now while deferring taxes on the rest.
Drop and Swap vs. Swap and Drop: What It Means and Why It's Risky
These advanced partnership restructuring strategies can solve ownership disputes in 1031 exchanges, but they're risky.
Diversification Strategy: Exchange One Property Into Multiple
Sell one large investment property and buy 2-3 smaller ones using a 1031 exchange. Learn how to manage identification rules and mix direct purchases with DST investments.
Consolidation Strategy: Exchange Multiple Properties Into One
Learn how to sell multiple investment properties and buy one larger replacement property using a 1031 exchange. Perfect for simplifying your portfolio.
More
1031 Exchange Calculator: How to Estimate Your Tax Savings
Most investors hear "capital gains tax" and multiply their gain by 15% or 20%. That captures one of four tax layers.
Failed 1031 Exchange: What Happens and What to Do Next
A 1031 exchange "fails" when the IRS requirements aren't met and the tax deferral is denied. This can happen at several points