What is constructive receipt and how do safe harbors prevent it?

Constructive receipt occurs when a client obtains actual or constructive control of sale proceeds during the exchange period. Under IRC 1031(c), safe harbors protect against constructive receipt if: (1) a qualified intermediary holds the proceeds in a segregated account; (2) the client never receives or has access to the funds; and (3) the QI wires funds directly to the seller of the replacement property. The client cannot take a check, wire the funds personally, or delay transfer to the QI. This is the single biggest technical risk in 1031 exchanges. See [/learn/1031-for-advisors-playbook](/learn/1031-for-advisors-playbook) for safeguards.

What is the "like-kind" standard under current law (post-TCJA)?

Post-TCJA, "like-kind" means any real property held for investment or productive use in a trade or business. The statute eliminated personal property from the definition in 2018. A client can exchange an office building for a multifamily apartment complex, or a commercial warehouse for farmland. The property does not need to be the same size, age, condition, or even location (interstate exchanges are permitted). The only requirement is that both properties be real property held for investment or business use. See IRC 1031(a)(1) and Treas. Reg. 1.1031(a)-1.

How are depreciation recapture and IRC 1245 property treated in a 1031?

Depreciation recapture is always recaptured and taxed as ordinary income, even in a 1031 exchange where gain is otherwise deferred. Under IRC 1031(c) and IRC 1245(a), the client must report recaptured depreciation on Form 8824 as recognized gain (or loss). Section 1250 property (real property) has limited recapture under current law. The deferred gain (gain in excess of recapture) is carried to the replacement property as adjusted basis. See [/learn/form-8824-advisor-walkthrough](/learn/form-8824-advisor-walkthrough).

Can you do a reverse exchange (buy before you sell)?

Yes, under Revenue Procedure 2000-37, the IRS provides a safe harbor for reverse exchanges. In a reverse exchange, the client acquires the replacement property before the relinquished property is sold. A qualified exchange accommodation titleholder (QEAT, typically a QI) acquires the replacement property and holds it until the relinquished property is sold; then the properties are exchanged. The client must "identify and close on" the relinquished property within 180 days. Reverse exchanges are useful when the replacement property is available immediately but the relinquished property is not yet sold. They require careful timing and QI expertise.

What is Revenue Procedure 2008-16 (vacation home exchanges)?

Rev. Proc. 2008-16 allows a client to exchange a vacation home held for personal use for a like-kind property held for investment, and vice versa, without losing 1031 treatment. The safe harbor requires the client to hold the vacation home for investment purposes for at least 24 months before the exchange, and to hold the replacement property for investment purposes for at least 24 months after the exchange. Without compliance with these holding periods, the property fails the 1031 test. This ruling is important for clients with vacation properties they want to convert to rentals. See [/learn/vacation-home-1031-exchange](/learn/vacation-home-1031-exchange).

Can you exchange across state lines?

Yes. IRC 1031 contains no geographic limitation. A client can exchange real property located in California for real property located in New York, or in any other state or jurisdiction. The property must still meet the like-kind test (both must be real property held for investment or business use) and must comply with the 45/180-day timeline. Interstate exchanges do not face additional federal hurdles, but state law and local recording requirements vary. Confirm title requirements and recording procedures with the title company in each state.

What happens to deferred gain at the client's death?

When a client dies, the deferred gain in a 1031 exchange receives a "step-up" in basis equal to the fair market value of the property on the date of death. Under IRC 1014, the heirs inherit the property at stepped-up basis, so the deferred gain is permanently forgiven and never taxed (at least not on the federal level; state law varies). This is a significant tax benefit and is often a reason clients do multiple exchanges: the gains can be deferred indefinitely if the client holds the property until death. This is not a legal opinion, but it is settled tax law. Consult the client's estate attorney on state-law implications.

How does the Tax Cuts and Jobs Act (TCJA) change 1031 rules?

The TCJA (2017) made three major changes: (1) eliminated 1031 treatment for personal property (only real property qualifies now); (2) added the related-party 2-year hold rule (IRC 1031(f)); and (3) did not otherwise change the like-kind or timeline rules. The real property-only rule is the biggest change. Clients with equipment, vehicles, or collectibles can no longer defer tax via 1031. See [/learn/1031-client-qualification-quick-screen](/learn/1031-client-qualification-quick-screen) for screening questions.

What is a "disqualified person" for qualified intermediary purposes?

Under IRC 1031(k)(1)(B) and Treas. Reg. 1.1031(k)-1(g)(4), a disqualified person is anyone who, within the 2 years prior to the exchange, has acted as an advisor, attorney, accountant, agent, or employee of the client, or who has provided services to the client related to real estate transactions. The QI cannot be a disqualified person. In practice, this means a client cannot use her accountant or attorney as a QI, nor can she use a realtor or broker. The QI must be an independent third party with no prior relationship to the client. This rule exists to ensure QI impartiality.

How long can a qualified intermediary hold proceeds?

The QI must hold proceeds until they are paid to the seller of the replacement property at closing. There is no maximum holding period, but the QI must release funds before the end of the 180-day acquisition period. If the client has not identified and closed on replacement property by Day 180, the exchange fails and the QI must release proceeds to the client, triggering tax. In practice, the QI will release proceeds on the closing date of the replacement property. Any delay in wire instructions to the QI may trigger constructive receipt if the client receives the funds after Day 180.

Can the client take a "loan" from the 1031 proceeds during the exchange period?

No. If the QI releases funds to the client for any reason during the 45/180-day window, constructive receipt occurs and the exchange fails. This includes "loans" from the QI to the client, advances, or early release of portions of the proceeds. The QI cannot accommodate this request. Some clients ask if they can borrow from the QI or from a third-party lender to fund a downpayment and use the 1031 proceeds to repay the loan at closing; this is a gray area and may trigger constructive receipt issues. Consult counsel if the client is in a tight cash position during the exchange.

What is a Delaware Statutory Trust (DST) and how is it treated for 1031 purposes?

A Delaware Statutory Trust is a passive investment vehicle that holds real property. Under Revenue Ruling 2004-86, an interest in a DST is treated as an interest in real property and qualifies as like-kind to other real property. This allows investors to exchange into DSTs without losing 1031 treatment. DSTs appeal to investors who want diversification or passive management. However, DSTs are heavily regulated and their tax treatment depends on structure; some DST interests may trigger liability concerns. Consult counsel on the specific DST structure before recommending one as a replacement property. See [/learn/1031-advisor-faq](/learn/1031-advisor-faq) for more on DSTs.

What are the tax implications of exchanging into a DST?

An investor who exchanges property for a DST interest must comply with all 1031 rules: the DST interest must be identified within 45 days, the closing must occur within 180 days, and the taxpayer must carry over adjusted basis from the relinquished property. The investor's pro-rata share of the DST's depreciation deduction flows through to the investor's tax return. The investor's deferred gain is preserved in the DST interest. However, DST partnerships are structured differently (some are partnerships, some are not), and the client must understand the liability implications and tax reporting requirements. Consult the client's CPA on integration with the annual tax return.

Can an exchange into a DST be unwound if the DST fails or is unwound?

This is a complex question. If a DST is liquidated or unwound within 2 years of the client's acquisition, the client may face constructive receipt or gain-recognition issues, depending on the circumstances and the DST terms. A prudent investor and advisor should review the DST offering documents for unwinding provisions and exit strategies before committing. In some cases, an advisor may recommend a backup replacement property to ensure the client has a like-kind option if the DST fails. This is beyond typical 1031 scope; consult counsel.

What is IRC 1031(a)(3) and the three-property identification rule?

IRC 1031(a)(3) allows a client to identify up to three replacement properties without regard to their value. This is the "three-property rule." If a client identifies three properties and closes on any one of them, the exchange is compliant, even if the identified properties are substantially different in value. However, once a client identifies more than three properties, the client must close on 95% of the total identified value. This safe harbor allows some flexibility in identification but also creates an incentive to limit the identification list. Most advisors recommend identifying 1-2 solid properties rather than 3, to avoid confusion.

What is the "95% rule" and when does it apply?

If a client identifies more than three replacement properties, the exchange is still compliant if the client closes on identified properties representing at least 95% of the total fair market value of all identified properties. For example, if the client identifies four properties worth $100k, $200k, $300k, and $400k (total $1M), the client must close on property(ies) representing at least $950k in value. This rule exists to discourage excessive identification lists. In practice, most advisors keep identification to three or fewer properties to avoid the 95% calculation.

How does the 45-day identification window interact with weekends and holidays?

The 45-day deadline is absolute and does not accommodate weekends, holidays, or extensions. Day 45 is calculated as a calendar day, not a business day. If Day 45 falls on a Saturday, midnight Saturday is the deadline. If it falls on Christmas, midnight Christmas is the deadline. The IRS has not granted extensions for natural disasters or emergencies. Advisors should plan to submit the identification letter by Day 40 to ensure compliance and account for any processing delays by the QI.

What if the client wants to identify a property but negotiations are still ongoing?

The client can identify a property even if the purchase contract is not yet signed. The identification is a statement of intent to acquire that property. However, the client should not identify a property she does not intend to acquire or is not seriously pursuing. If the client identifies a property and then walks away (e.g., due to failed inspection), the client has wasted one of her three identification slots. Best practice is to identify only properties that are in active negotiation or for which a contract is in place.

How are the 45-day identification and 180-day acquisition periods calculated if the sale closes on Dec. 31?

Day 1 is Dec. 31. Day 45 is February 14 (of the following year). Day 180 is June 30 (of the following year). This creates a multi-year transaction, which is perfectly fine under the IRC. However, it means the deferred gain straddles two tax years. The client will report the exchange on the Form 8824 for the year of the sale (the year in which the relinquished property closes). Consult the CPA on any implications for estimated taxes or multi-year planning.

Can a partnership or multi-member LLC exchange property, and if so, what is the basis outcome?

Yes. A partnership (including a multi-member LLC taxed as a partnership) can exchange property. The partnership is the taxpayer, and the exchange defers gain at the partnership level. Each partner carries his or her pro-rata share of the deferred gain as adjusted basis in the partnership interest. The partnership's basis in the replacement property is the amount paid (deferred gain plus any boot paid). Partners may contribute additional capital or adjust their percentage ownership without affecting the partnership's 1031 treatment, as long as the partnership itself remains the taxpayer. Consult the partnership agreement and an attorney on any implications.

What documentation must the advisor retain for a successful audit defense?

Keep: the exchange agreement with the QI (signed by all parties), the identification letter (and all versions), correspondence with the QI confirming receipt of proceeds and identification, the purchase and sale agreements for both the relinquished and replacement properties, the closing statements, preliminary and final title commitments, appraisals or BPOs, the preliminary tax projection, the timeline document shared with team members, Form 8824 (when filed), and any correspondence with the client or team addressing qualification, timing, or technical issues. This file is evidence that the advisor managed the exchange diligently and in compliance with IRC 1031. It also supports the client if the IRS audits the return.

What is the advisor's liability exposure if an exchange fails?

An advisor who fails to follow IRC 1031 rules, misses deadlines, or provides incorrect advice may face malpractice claims. The exposure is highest if the client loses tax deferral due to the advisor's negligence (e.g., missing the Day 45 identification deadline). Advisors should carry errors and omissions insurance, maintain compliance checklists, and escalate edge cases to specialists. Advisors should also disclaim liability for tax outcomes and recommend that clients retain a CPA or attorney for tax and legal advice. A clear engagement letter defining the advisor's scope (planning only, or including timeline management?) can limit exposure.

Can a client do multiple 1031 exchanges in succession (chaining exchanges)?

Yes. A client can do a 1031 exchange, hold the replacement property for investment, and then exchange it again for another property. There is no limit on the number of exchanges a client can do, nor is there a holding period required between exchanges. Some investors use this strategy to consolidate properties or to move between markets. However, each exchange must independently comply with IRC 1031 rules: proper QI engagement, 45/180-day timeline, and like-kind property. The deferred gain from prior exchanges carries forward and compounds as adjusted basis in the replacement property.

What is the tax impact of a failed or abandoned exchange?

If an exchange is abandoned before the identification deadline (Day 45), the client has simply sold the property and must report the gain or loss. The tax is due in the year of the sale. If an exchange is initiated but fails (e.g., identification is missed or closing does not occur by Day 180), the client may have already borne costs (QI fees, inspection fees) without receiving a deferral. The deferral benefit is lost. There is no "do over" or amendment opportunity to claim a 1031 retroactively if it was not properly structured. This is why early planning and timeline management are critical.

What role do state taxes play in a 1031 exchange?

State law varies significantly. Some states (California, New York) recognize IRC 1031 and defer state gain recognition if the exchange is federal-compliant. Other states have their own 1031 rules or may tax the exchange differently. A few states do not recognize 1031 deferral at all (rare). The advisor should consult the client's CPA or a state tax specialist if the property is in a state with unusual or unfamiliar tax treatment. State income tax can erode the benefit of a federal deferral if the state does not cooperate.

Is it possible to do a 1031 exchange if the client is deceased or in probate?

An exchange can be done on behalf of a deceased client's estate if it is initiated before the client's death and completed after. The executor or administrator can identify and close on replacement property within the standard 45/180-day timeline. However, the rules are complex and the timing is challenging. If the client dies after relinquishing the property, the executor should immediately contact the QI and the CPA to determine if an exchange is feasible or if a taxable sale is more practical. Consult an estate attorney and the client's CPA if this scenario arises.

How does a client calculate basis in the replacement property?

The replacement property's basis is calculated as follows: (1) Start with the adjusted basis of the relinquished property. (2) Add any boot paid out of pocket by the client (or debt incurred). (3) Subtract any boot received (cash or debt relief). (4) The result is the client's adjusted basis in the replacement property. For example: Relinquished property adjusted basis is $200k. Replacement property costs $300k. Client pays $100k in cash (boot). New basis is $200k + $100k = $300k. If the client had received $50k in boot, the new basis would be $200k - $50k = $150k. See [/learn/form-8824-advisor-walkthrough](/learn/form-8824-advisor-walkthrough) for detailed examples.

What happens if the client's loan is paid off from the sale proceeds (debt relief)?

Debt relief is treated as boot received by the client, and it reduces the deferred gain. For example: Relinquished property has $500k of mortgage debt. It sells for $800k (gross proceeds). The QI receives $300k in net proceeds ($800k - $500k mortgage payoff). For 1031 purposes, the client is treated as receiving $500k of boot (debt relief), and the net proceeds to the QI are $300k. The client's recognized gain is limited to the lesser of realized gain or boot received ($500k). The client's adjusted basis in the replacement property is carried over, adjusted for the boot. This is a complex calculation; coordinate with the CPA.

Advisor FAQ Hub: 1031 Questions Professionals Get Every Week

Q: What is boot and how is it taxed?

Boot is any property received in the exchange that is not like-kind to the relinquished property. Under IRC 1031(b), if boot is received (cash, debt relief, or non-real-property assets), the gain recognized is limited to the lesser of the realized gain or the boot received. Boot can be "negative" (client pays additional cash out of pocket), in which case it reduces deferred gain but does not trigger current tax. Depreciation recapture is always recaptured regardless of boot. See [/learn/form-8824-advisor-walkthrough](/learn/form-8824-advisor-walkthrough) for basis calculations.

Q: How do related-party rules work under IRC 1031(f)?

IRC 1031(f) (added by the TCJA) provides that if both the relinquished property and the replacement property are related-party property, and the related party disposes of the property within 2 years of the taxpayer's acquisition, the taxpayer's exchange is disqualified retroactively and the taxpayer owes tax. Related parties include spouses, lineal descendants/ancestors, siblings, and entities in which the taxpayer owns 50%+. The 2-year hold requirement is a "cliff" rule: if the related party sells the property on Day 730, the exchange is disqualified. Related-party transactions can still be done but require careful planning and documentation. Consult counsel.

22 min read · For Advisors · Last updated March 2026

Key Takeaways

This FAQ is a desk reference for advisors. Bookmark it. Each answer is precise, cites IRC sections and IRS guidance, and links to deeper articles. Use it to quickly answer client questions, refer to IRS authority, and identify when specialist input is needed.

Timeline and Deadlines

What counts as Day 1 for the 45/180-day periods? Day 1 is the day title closes on the relinquished property and the client no longer owns it. Both the 45-day identification window and 180-day acquisition period are measured in calendar days from Day 1. Confirm the exact closing time with the title company.

Can weekends or holidays extend the deadlines? No. The IRC 1031 deadlines are absolute. If Day 45 falls on a Saturday, midnight Saturday is the deadline. Most advisors recommend submitting the identification letter by Day 40 to allow for processing delays.

How are deadlines calculated for a Dec. 31 closing? Day 1 is Dec. 31. Day 45 is February 14 (following year). Day 180 is June 30 (following year). The deferred gain straddles two tax years. The exchange is reported on Form 8824 for the year of the sale. Consult the CPA on estimated taxes.

What if the client's sale closes late in December? December closings compress the identification and acquisition timeline across a year-end boundary. Plan carefully and maintain a wide margin on the identification deadline. The same-taxpayer rule still applies.

Can the advisor sign the identification letter? No. The identification must be signed by the client/taxpayer or by a duly authorized representative with written power of attorney. Most advisors do not sign identification letters to avoid liability. See 1031-identification-letter-template-advisor.

What is the most common reason identifications fail? Client procrastination. The second most common: identified properties fall through on inspection or negotiation, leaving no viable replacement by Day 180. Identify early, include at least one property the advisor is confident will close.

Boot and Tax Calculations

What is boot and how is it taxed? Boot is any property received that is not like-kind (cash, debt relief, or non-real-property assets). Gain recognized is the lesser of realized gain or boot received. Depreciation recapture is always recaptured regardless of boot. See form-8824-advisor-walkthrough.

How is depreciation recapture treated? Depreciation recapture is recognized as ordinary income even in a 1031 exchange where gain is otherwise deferred. Section 1250 property has limited recapture under current law. The deferred gain in excess of recapture carries to the replacement property as adjusted basis.

How is basis calculated in the replacement property? Start with adjusted basis of the relinquished property. Add boot paid out of pocket. Subtract boot received. The result is the adjusted basis in the replacement property.

What happens when a loan is paid off from sale proceeds? Debt relief is treated as boot received. The mortgage payoff amount reduces the deferred gain. Coordinate closely with the CPA on Form 8824 preparation.

Can the client borrow from the 1031 proceeds during the exchange? No. If the QI releases funds to the client for any reason during the 45/180-day window, constructive receipt occurs and the exchange fails. See qi-safe-harbor-constructive-receipt-advisor.

Can a client exchange into a joint-tenancy property with a spouse? Only if the relinquished property was also held jointly. The same-taxpayer rule requires identical ownership on both sides. Consult a tax attorney for community property state nuances.

Property Qualification

What is "like-kind" under current law (post-TCJA)? Any real property held for investment or productive use in a trade or business. A client can exchange an office building for farmland, or a commercial warehouse for a multifamily complex. The property does not need to be the same type, size, or location.

Does 1031 still apply to anything besides real estate? No. TCJA (2017) eliminated 1031 deferral for personal property, equipment, vehicles, and non-real-estate assets. See 1031-client-qualification-quick-screen.

Do property flips qualify? It depends on intent and holding period. If the client is a dealer (buying and selling as a business), properties are inventory and do not qualify. A property held 2+ years with investment intent has a stronger argument. Consult CPA or tax attorney for ambiguous cases.

What is Rev. Proc. 2008-16 (vacation home exchanges)? A safe harbor for dwelling units used partly for personal use. The property must be rented at fair market value for at least 14 days per year and personal use must not exceed the greater of 14 days or 10% of rental days, for two years before and after the exchange. See vacation-home-1031-rev-proc-2008-16-advisor.

Can an exchange into a DST be unwound? If a DST is liquidated within 2 years, the client may face constructive receipt or gain-recognition issues. Review the DST offering documents for unwinding provisions and consider a backup replacement property. Consult counsel.

Entity and Ownership

Can an LLC do a 1031 exchange? Yes. The key rule is same taxpayer on both sides. If property is in "XYZ Rentals LLC," the replacement must be in that same LLC. A single-member LLC disregarded for tax purposes is treated as the owner. Do not change entity structure during the exchange. See partnership-llc-1031-same-taxpayer-advisor.

Can a partnership or multi-member LLC exchange property? Yes. The partnership is the taxpayer. The exchange defers gain at the partnership level. Each partner carries their pro-rata share of the deferred gain. Partners cannot individually opt in or out of the exchange.

What is a "disqualified person" for QI purposes? Anyone who has acted as an advisor, attorney, accountant, agent, or employee of the client within the prior 2 years, or a related entity. The QI must be an independent third party. See qi-safe-harbor-constructive-receipt-advisor.

How do related-party rules work under IRC 1031(f)? If both properties are related-party property and the related party disposes of the property within 2 years, the exchange is disqualified retroactively. Related parties include spouses, lineal family, siblings, and entities with 50%+ ownership. See related-party-1031-two-year-rule-advisor.

What if the client is purchasing jointly with a spouse? If the relinquished property is held individually, the replacement must also be held individually. The same-taxpayer rule requires identical entities on both sides. Consult a tax attorney for structuring options.

DSTs and Alternatives

What is a DST and how is it treated for 1031? A Delaware Statutory Trust is a passive investment vehicle holding real property. Under Revenue Ruling 2004-86, a DST interest is treated as a real property interest and qualifies as like-kind. See dst-qualify-1031-revenue-ruling-2004-86-advisor.

Can a client do multiple 1031 exchanges in succession? Yes. There is no limit on the number of exchanges and no holding period required between them. The deferred gain from prior exchanges carries forward. If the client holds replacement property until death, a step-up in basis eliminates the deferred gain.

What happens to deferred gain at death? The replacement property receives a step-up in basis to fair market value under IRC 1014. The deferred gain is permanently forgiven. Heirs inherit at stepped-up basis. This is a significant benefit and a primary reason for serial exchanges.

What is a reverse exchange? Under Rev. Proc. 2000-37, the client acquires replacement property before selling the relinquished property. An Exchange Accommodation Titleholder holds the property during the transition. The 180-day deadline still applies. See reverse-1031-exchange-advisor-guide.

Identification Rules

What is the three-property identification rule? IRC 1031(a)(3) allows identification of up to three replacement properties without regard to value. The client must close on at least one. If more than three are identified, the 200% or 95% rule applies.

When does the 95% rule apply? If a client identifies more than three properties and the aggregate value exceeds 200% of the relinquished property value, the client must close on at least 95% of the total identified value. Most advisors keep identification to three or fewer to avoid this calculation.

Must a formal identification letter be used? The identification must be in writing, signed by the client, and delivered to the QI. A formal letter using the QI's template is the safest approach. Emails or informal lists may be vulnerable to challenge. See 1031-identification-letter-template-advisor.

This FAQ is a reference hub. For detailed guidance on any topic, follow the linked articles. When in doubt, escalate to a CPA, tax attorney, or QI who specializes in 1031 exchanges.

The Bottom Line

1031 law is technical, but the fundamentals are clear and consistent. Use this FAQ to ground your practice in authority and to escalate edge cases to qualified counsel.

Advisor FAQ Hub: 1031 Questions Professionals Get Every Week

Timeline and Deadlines

Boot and Tax Calculations

Property Qualification

Entity and Ownership

DSTs and Alternatives

Identification Rules

Frequently Asked Questions

Related Articles

Advisor Quick Screen: Does This Client Qualify for a 1031 Exchange?

Boot for Advisors: Cash Boot, Mortgage Boot, and Hidden Boot

Basis Tracking After a 1031 Exchange: Advisor Worksheet and Example

Timeline and Deadlines

Boot and Tax Calculations

Property Qualification

Entity and Ownership

DSTs and Alternatives

Identification Rules

Frequently Asked Questions

What is boot and how is it taxed?

What is constructive receipt and how do safe harbors prevent it?

How do related-party rules work under IRC 1031(f)?

What is the "like-kind" standard under current law (post-TCJA)?

How are depreciation recapture and IRC 1245 property treated in a 1031?

Can you do a reverse exchange (buy before you sell)?

What is Revenue Procedure 2008-16 (vacation home exchanges)?

Can you exchange across state lines?

What happens to deferred gain at the client's death?

How does the Tax Cuts and Jobs Act (TCJA) change 1031 rules?

What is a "disqualified person" for qualified intermediary purposes?

How long can a qualified intermediary hold proceeds?

Can the client take a "loan" from the 1031 proceeds during the exchange period?

What is a Delaware Statutory Trust (DST) and how is it treated for 1031 purposes?

What are the tax implications of exchanging into a DST?

Can an exchange into a DST be unwound if the DST fails or is unwound?

What is IRC 1031(a)(3) and the three-property identification rule?

What is the "95% rule" and when does it apply?

How does the 45-day identification window interact with weekends and holidays?

Can a client identify properties informally or via email, or must a formal identification letter be used?

What if the client wants to identify a property but negotiations are still ongoing?

How are the 45-day identification and 180-day acquisition periods calculated if the sale closes on Dec. 31?

Can a partnership or multi-member LLC exchange property, and if so, what is the basis outcome?

What documentation must the advisor retain for a successful audit defense?

What is the advisor's liability exposure if an exchange fails?

Can a client do multiple 1031 exchanges in succession (chaining exchanges)?

What is the tax impact of a failed or abandoned exchange?

What role do state taxes play in a 1031 exchange?

Is it possible to do a 1031 exchange if the client is deceased or in probate?

How does a client calculate basis in the replacement property?

Can a client exchange into a joint-tenancy property with a spouse?

What happens if the client's loan is paid off from the sale proceeds (debt relief)?

Related Articles

Advisor Quick Screen: Does This Client Qualify for a 1031 Exchange?

Boot for Advisors: Cash Boot, Mortgage Boot, and Hidden Boot

Basis Tracking After a 1031 Exchange: Advisor Worksheet and Example