About 1031 Exchanges
Basic Steps
| Getting Started
- Exchanger enters into an Exchange Agreement with ITEC.
- Exchanger assigns sales contract to sell relinquished property to ITEC.
- Exchanger conveys title of relinquished property directly to purchaser at closing.
- Net sales proceeds are paid to ITEC at closing.
- Exchanger identifies replacement property within forty-five days from the transfer date of the relinquished property.
- Exchanger contracts to purchase replacement property.
- Exchanger assigns purchase contract to buy replacement property to ITEC.
- Closing of the replacement property occurs within the earlier of one hundred-eighty days from the transfer
date of the relinquished property or the due date of the
exchanger's tax return for the year in which the relinquished
property is transferred.
- At the closing for the replacement property, ITEC
purchases replacement property with exchange funds from
the sale of the relinquished property and directs the
seller to convey title directly to the exchanger.
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1. Always discuss your exchange with your legal or tax
counsel.
2. Download the Exchange
Order Form, fill it out, and fax it to ITEC, along
with a copy of your relinquished property sales contract
as early as possible.
3. ITEC will contact you or your attorney to confirm
receipt of your order and draft your exchange documents.
4. As soon as you decide to do an exchange or accept
a purchase offer on your relinquished property, begin
looking for replacement property. You must formally identify
your replacement property within forty-five days after
the transfer of your relinquished property.
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