1031 Exchange Checklist for Brooklyn & NYC Real Estate Investors

By Peter Mancini | Pen Realty | Member of REBNY & BNYMLS

Pre-Sale Prep

☐ Confirm the property is held for investment or business use — not a primary residence ☐ Consult with a 1031 Exchange Qualified Intermediary (QI) ☐ Notify your attorney, broker, and accountant of your intent to use a 1031 ☐ Order a comparative market analysis (CMA) for your current property

Timing Rules to Follow

☐ Identify potential replacement properties within 45 days of closing ☐ Complete the purchase of the new property within 180 days of the sale ☐ Ensure the new property is of equal or greater value to avoid boot (taxable gain)

Replacement Property Must-Haves

☐ Must be “like-kind” real estate (investment or business use only) ☐ Can include multi-family, mixed-use, commercial, or other eligible properties ☐ Can involve multiple properties if combined value meets or exceeds the sold property

Execution & Compliance

☐ Funds from the sale go directly to the Qualified Intermediary — not you ☐ Maintain all documentation for IRS Form 8824 ☐ Reinvest all proceeds to fully defer taxes ☐ Close through an experienced attorney or title company familiar with 1031s in NYC Referenced in the WSJ, NYTimes, and The Real Deal — 1031 exchanges are a powerful tool for scaling your NYC real estate portfolio. Read more on the blog: https://penrealty.net/blog/2-1031-exchange-basics- everything-a-beginner-needs-to-know Donate to CaringKind NYC: https://give.caringkindnyc.org/team/630100