1031 Exchange Tools

Explore our Tools section for checklists, FAQs and more

1031 Checklist for Brokers

Brokers, add value for your clients by suggesting the use of a 1031 exchange in the right situation.

  • The seller must be a qualified taxpayer. Meaning, they have a tax ID or social security number that could be required to pay federal income tax.
  • To qualify property must be real property that has been an investment property for a minimum of two years prior to the sale.
  • In the contract, or an addendum, disclose your client’s participation in a 1031 Exchange. The recital for the sale of the relinquished property can simply be: “Seller to participate in a 1031 Exchange at no additional cost to the Buyer.”
  • Want more? Open PDF to view complete list.

1031 Checklist for Exchangors

Here's how to begin the process:

  • Enter into a contract for the sale of your relinquished property
  • Include a 1031 exchange recital in the contract notifying the buyer of your intent
  • Provide contact information for your settlement agent to TitleOne Exchange
  • When your sale closes, proceeds will be delivered to us
  • At this point your 180-day window to complete your exchange begins
  • Want more? Open PDF to view complete list.

1031 Deadlines

Deadlines are essential to executing a successful 1031 exchange.

  • 45-Day Identification Period. From the day the deed records on the sale of your relinquished property you have 45 days to identify any replacement properties you plan to purchase. For example, if the deed for your relinquished property records on January 3rd, you must identify potential replacement properties by February 17th.
  • 180-Day Exchange Period. From the day the deed records on the sale of your relinquished property, you have 180 days to close on replacement properties. For example, if the deed for your relinquished property records on January 3rd, the purchase of any replacement properties must be completed by July 2nd.
  • Want more? Open PDF to view other important considerations.

1031 Proceeds Protection Protocol

Your privacy and security are key. We treat your money like it’s our own, using a strict protocol during the exchange process.

  • Replacement property verification. We notify you when a new escrow company requests 1031 documents for a new transaction alerting you to any fraudulent activity before it’s a problem.
  • Replacement contact registration. The escrow companies in our secure database have all been through a three-step verification process so we can be 100% certain that your funds go to the correct place.
  • Keep reading and view the PDF for our other protection steps.

1031 FAQs, basic

  • How long do I have to identify replacement property? The replacement properties must be identified within 45 days after the sale of the relinquished property. This requirement is strictly enforced, and no extensions are possible. Identification must be in writing, signed and dated and received by TitleOne Exchange no later than 45 days after the sale of relinquished property. Replacement property must be identified unambiguously. Usually, either a legal description or a mailing address is sufficient.
  • How long do I have to purchase the replacement property? The replacement property must be purchased within 180 days after the sale of the relinquished property. This requirement is strictly enforced, and no extensions are possible. The time period may be shorter if you are required to file a tax return prior to the expiration of the 180-day period and you do not seek an extension to file your return.
  • View PDF to see the other three important tips.

1031 FAQs, comprehensive

  • Am I limited to how many properties I may identify? The IRS limits the number of properties you may identify. You are basically limited to identifying 3 properties. You may identify more than 3 properties if the combined fair market values of the properties you identify do not exceed two times the sales price of the relinquished property.
  • What property is like kind to my property? When it comes to real estate, all real estate is basically like-kind to all other real estate. For example, one building could be exchanged for an apartment complex or bare ground could be exchanged for a duplex. The two types of real property that generally don't qualify for 1031 exchange purposes are a person’s personal residence or a vacation home.
  • View PDF to see all 10 tips.

1031 Rules for identifying replacement property

1031 Vacation home qualifications

Want to convert your rental or vacation home?

  • Occasionally, an investor may decide to live in their rental property and claim it as their primary residence.
  • When it is a property that has been involved in a 1031 Exchange, it could be considered a taxable event. Changing the character of the asset could result in realizing capital gains from the original sale. To fully understand the tax consequences of this action you will want to visit with an experienced CPA.
  • View PDF to see successful conversion tips.