Fill Form 4797 Proceeds 2022-2023

Now that you've decided to complete a 1031 exchange, you may be wondering what the process looks like. Step 1: Once you are under contract for the sale of your existing property but before you close, you need to retain the services of a qualified intermediary, such as Exeter 1031 Exchange Services LLC. Step 2: Your qualified intermediary will draft the necessary legal documents in order to properly structure your 1031 exchange. You should also have your tax adviser review the estimated closing statement prior to closing. Step 3: Your net proceeds will be sent to your qualified intermediary for safekeeping at the close of the sale transaction. Step 4: You now have exactly 45 calendar days to identify your potential replacement properties to your qualified intermediary. Step 5: You now have exactly 180 calendar days to complete your 1031 exchange. Once you are under contract for the purchase of your replacement property but before you close, notify your qualified intermediary so they can draft the necessary legal documents. You should also have your tax adviser review the estimated closing statement prior to closing. Step 6: Your qualified intermediary will send your net proceeds to your closing agent in order to close on your replacement property. Congratulations, you have completed a successful 1031 exchange! 1031 exchanges are complex, contact Exeter 1031 Exchange Services LLC as a trusted and experienced qualified intermediary at 619-239-3091.