STEP
1 |
Always
discuss your exchange with your tax advisor. |
|
STEP
2 |
Contact
BANKERS Escrow Corporation
at 800-571-6595 immediately
upon deciding to do an exchange to insure proper
document preparation and coordination of all parties,
including real estate agent, tax advisor & title
company.
|
STEP
3 |
Make
sure that the real estate contracts have the 1031
terminology in the contract that allows for the
assignment & indicates your intent to do an exchange. |
|
STEP
4 |
Sample
Terminology for Real Estate Contracts [Taxpayer
should consult their tax advisor or real estate
professional as this is suggested language only]
"Both the Seller and the Buyer hereto agree
to cooperate with each other in a manner necessary
to enable either party to qualify for a IRC Section
tax deferred exchange
at no additional cost
or liability to either party. Either party’s rights
and obligations will be assigned to BANKERS
Escrow Corporation to facilitate such exchange." |
STEP
5 |
Replacement
property must be identified within 45 days of the
closing of the relinquished property. |
|
STEP
6 |
Acquisition
of the replacement property must be completed within
180 days of the closing of the relinquished property. |
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