IPX1031 Insight Blog

1031 Exchange Checklist

A 1031 Like Kind Exchange transaction requires planning, expertise and support. Here’s a checklist outlining key steps in your exchange.

How to do a 1031 Exchange

  1. Choose your 1031 Qualified Intermediary (QI)
  2. Consult with your tax professionals
  3. Include Cooperation Clause language in your purchase and sale agreement
  4. QI prepares your exchange documents
  5. Start searching for Replacement Property
  6. Sign all documents QI prepares
  7. Sell your Relinquished Property
  8. Identify your Replacement Property
  9. Enter into contract on Replacement Property
  10. Contact QI once Replacement Property escrow is opened
  11. Close on Replacement Property
  12. QI transfers funds to complete your purchase
  13. Your exchange is complete

How to do a 1031 Exchange – Key Steps


  1. Choose your 1031 Qualified IntermediaryIPX1031, as your Qualified Intermediary (QI), will prepare the documentation for the 1031 Exchange, and most importantly, safeguard your exchange funds.
  2. Consult with your tax professionals – IPX1031 is an excellent resource and will provide a great deal of information about like kind exchanges, however we cannot provide legal or tax advice. Engage your legal, tax, and/or financial advisors to review your specific circumstances. Although this is not mandatory for your 1031 Exchange, IPX1031 recommends that investors should always seek advice from their advisors.
  3. Include Cooperation Clause language in your purchase and sale agreement – Instruct your real estate agent or attorney to include a “1031 Exchange Cooperation Clause” in the contract / purchase and sale agreement.
  4. Qualified Intermediary prepares your exchange documents – After the contract is signed, contact your IPX1031 sales executive directly, call toll free at 888-771-1031, or go to www.ipx1031.com and click on Start an Exchange Today, BEFORE your transaction closes. IPX1031 will prepare 1031 documents that need to be signed prior to closing.
  5. Start searching for Replacement Property – Remember that once you close on your old Relinquished Property, the clock starts ticking and you only have 45 days to identify your new Replacement Property. 45 days comes very quickly, so start looking at your options now.
  6. Sign all documents QI prepares – Sign all documents IPX1031 prepares PRIOR to the transfer of your Relinquished Property and determine sale proceeds to be placed into your Exchange.
  7. Sell your Relinquished Property – complete the transfer of your Relinquished Property.
  8. Identify your Replacement Property – By midnight of your 45 day deadline, complete the Identification form and deliver it via fax, email, mail to IPX1031.
  9. Enter into contract on Replacement Property adding the Cooperation Clause language.
  10. Contact QI once Replacement Property escrow is opened. IPX1031 will prepare all necessary documents for you to sign and to review with your tax/legal advisors.
  11. Close on Replacement Property
  12. QI transfers funds to complete your purchase – once your transaction closes, IPX1031 will transfer your exchange funds.
  13. Your exchange is complete. Report your 1031 Exchange on IRS Form 8824 for the tax year your 1031 Exchange began.

For more information or to discuss your specific 1031 tax deferred exchange situation, please contact us.

1031 Exchange and Defer? Or Sell and Pay Taxes?
Opportunities of the 1031 Exchange
How Important is Your Qualified Intermediary?
Capital Gains Estimator
IPX1031 Knowledge Center

Locate a 1031 Expert In Your Area

Recent Posts

Simple Steps to Start a 1031 Exchange

1031 Exchange Time?  Follow These Simple Steps to Get StartedOftentimes investors want to structure their real estate sales as Tax Deferred 1031 Exchanges but are unsure as to how to begin and when to involve IPX1031 in the exchange process. Below we will walk you...

IPX1031 Doubles 1031 Coverage in Washington with Nicole Valdez

IPX1031 Washington Doubles Up 1031 Coverage with Nicole Valdez ​ IPX1031 Strengthens WA Sales Team with New Hire Nicole Valdez BELLEVUE, WA (June 3, 2024) - Investment Property Exchange Services, Inc. (IPX1031) IPX1031, the leading provider of 1031 Exchange services,...

Can You Change Spousal Ownership in a 1031 Exchange?

Will Adding/Deleting My Spouse Impact My 1031 Exchange?Generally, no changes should be made to the way title to property is held shortly before or after property is sold/purchased via a 1031 Exchange. For example, if title to an apartment building is held by Lisa and...

Pin It on Pinterest