Planning & Execution

Step-by-step guides for executing a 1031 exchange: timelines, identification strategies, closing costs, and paperwork.

Essential reading

How to Choose a Qualified Intermediary: The Complete Checklist

Everything you need to evaluate a qualified intermediary for your 1031 exchange: fund security, insurance, fees, red flags, and the questions to ask before you hand over your money.

12 min readRead article

1031 Identification Rules: 3-Property, 200%, and 95% Explained

A clear explanation of the three identification rules for 1031 exchanges — the 3-Property Rule, the 200% Rule, and the 95% Rule — with examples, strategies, and the backup DST approach.

10 min readRead article

All articles

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.

14 min read

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.

14 min read

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.

15 min read

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. Understand the mechanics and IRS concerns before attempting either one.

15 min read

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.

12 min read

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.

10 min read

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.

11 min read

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.

11 min read

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.

10 min read

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.

9 min read

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.

9 min read

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.

8 min read

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.

10 min read

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.

10 min read

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. Here's how to protect yourself.

7 min read

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.

9 min read