The 1031 Exchange Process - How to Exchange in NY, CA and Nationwide

Selling tax free has never been easier! It's simple when you follow the steps, and we'll be there for you at every phase in your transaction. For your convenience, we've provided the following checklist to walk you through the basic exchange process with links to the required forms necessary to complete each step. Happy exchanging!

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1. Consult your 1031 Exchange Advantage expert regarding your specific property and situation. We'll review the transaction with you and your tax and/or legal advisors.
   
   
2. Sell your relinquished property. Remember to notify your buyers in the contract or an amendment to the contract of your intent to complete a 1031 exchange (with buyer's cooperation and at no additional cost to the buyers).
   
   
3. Open your exchange as soon as you have your property under contract. You can submit the information online, or download the PDF and fax it to us at: (858)764-2875.
   
   
4. Sit back. From here, your 1031 Exchange Advantage team will do all the work. We'll prepare your exchange documents for the relinquished property sale and coordinate everything with your closing officer.
   
   
5. Sign your exchange documents assigning 1031 Exchange Advantage into the transaction as the seller and fax back to your closing company and us at (858)764-2875.
   
   
6. Close on the sale of your relinquished property. The exchange proceeds are wired to 1031 Exchange Advantage to be safely held in a trust account. You'll be e-mailed a ledger of your account within 24 hours of receipt.
   
   
7. Countdown begins. Your exchange period begins when you close on your relinquished property. You have 180 days to complete your exchange (or until the date your tax return is due, whichever is earlier).
   
   
8. Identify your replacement property. Mail us your identification letter, dated within your 45 day identification period.
   
   
9. Purchase your replacement property. Remember to notify the sellers in the contract that you are completing your 1031 exchange (with seller's cooperation and at no additional cost to the sellers).
   
   
10. Notify us when you are under contract for your replacement property. Ensure the timely receipt of your deposit or funds by providing us with three (3)  business days advance notice, or request same day funds( by 1pm - a rush fee will be charged)
    
    
11. Relax. Once again, we'll work with your closing officer to ensure you complete all the exchange documents as required.
    
    
12. Sign your exchange documents assigning 1031 Exchange Advantage into the transaction as the buyer and the Client Authorization Form allowing us to release your exchange funds to the closing agent, and fax back to your closing company and us at (858)764-2875.
    
    
13. Close on the purchase of your replacement property. 1031 Exchange Advantage will wire your exchange proceeds to the closing officer.
    
    
14. Celebrate! Congratulations. If all the exchange requirements were met, you've just successfully sold your real estate tax free. We can't wait to help you do it again!
    

Additional Resources

Contract Language - to be used when buying or selling

Open Exchange - Begin exchange immediately, fill out form online

This is not intended to be tax advice. This checklist is a simplified timetable of the basic 1031 exchange process and 1031 Exchange Advantage's role in that process. All the issues in your specific exchange may not be addressed. You are advised to consult with your own tax/legal advisors, as your individual situation is unique.