If you recently completed a 1031 exchange and you need to report it to the IRS, you may need to assemble some information to allow your tax preparer to put together everything required to file your federal tax return.
Your tax preparer will need to fill out form 8824, which is essentially a worksheet that helps the IRS connect the dots between the properties that were sold and received during the 1031 exchange. This form requires a lot of information. Here’s some of the information you can assemble and provide to your taxpayer in advance of the tax filing deadline:
If you used a qualified intermediary, you may have received a closeout or summary letter that provides all of the critical dates and explains how your exchange funds were utilized.
As to the relinquished property, you can provide a pdf copy of the final signed closing statement that summarizes how the monies were spent.
Provide the deed or conveyance document that was used to convey the ownership of the property to the purchaser.
If you received a 1099-S, this is another great document to provide your tax preparer.
Once you sold your relinquished property, you may have identified your replacement property within the 45 day identification period. If you did, you’ll want to provide a copy of that identification form to your tax preparer together with proof that it was timely sent to the recipient.
When you closed on your replacement property, you probably had a closing statement showing the funds coming in, the purchase price, the closing date, and various transactional expenses. This is a great thing to provide your tax preparer as well.
Sometimes, mistakes happen during closings and they need to be corrected. If you received a corrected document after closing, that’s important to give to your accountant so they’re working with updated information.
1031 Exchange Help
CPEC1031, LLC offers qualified intermediary services for taxpayers considering a 1031 exchange of real estate. A like-kind exchange is a great way to defer capital gains taxes on the sale of real estate by continuing your investment into a bigger replacement property. In order to defer all of your gains, you need to abide by the rules set out by section 1031 of the Internal Revenue Code. Work with a qualified intermediary on your exchange to ensure that you meet all the required benchmarks. Reach out to the intermediaries at CPEC1031, LLC today to see if a 1031 exchange is right for you!
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
© 2025 Copyright Jeffrey R. Peterson All Rights Reserved