■ 1031 Exchange Compliance Checklist Avoid Missed Deadlines. Defer Taxes. Invest Smarter. Brought to you by Peter Mancini | Pen Realty | A Signature Experience ■ BEFORE YOU SELL - Confirm your property is held for investment/business use - Speak with your CPA about capital gains and eligibility - Identify your real estate goals for the exchange - Choose a Qualified Intermediary (QI) — required by IRS - Assemble your 1031 team: broker, attorney, lender, QI ■ DAY OF SALE (START OF TIMELINE) - Notify your QI to initiate the exchange - Funds from the sale must go directly to the QI - Mark your 45-day and 180-day deadline dates ■ FIRST 45 DAYS – IDENTIFICATION PERIOD - Identify up to three replacement properties in writing - Submit the identification form to your QI - Consider backup properties in case your top choice falls through - Conduct due diligence on all options ■■ BY DAY 180 – CLOSING PERIOD - Finalize contract and financing for the replacement property - Complete inspections, appraisals, and title work - Close on one of the identified properties - Funds must transfer from QI directly to the seller ■ POST-CLOSING - Retain all documentation for IRS filing - Work with CPA to file IRS Form 8824 - Review performance of the new asset - Schedule your next review with Peter Mancini to build long-term investment plans ■ Pro Tip - Don’t wait until the last minute. Brooklyn’s market moves fast — and the IRS doesn’t offer grace periods. Resources - Watch the full 1031 Exchange Series: https://www.youtube.com/playlist?list=PLUypl0pc_o_TnewJdZ0pDfD98PDIz7BV0 - Support CaringKind NYC: https://give.caringkindnyc.org/team/630100
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