Start by organizing the facts and the professional team. These questions help CPAs, attorneys, brokers and qualified intermediaries prepare for a focused discussion; they do not establish that a transaction qualifies for tax deferral.
1. How is the property used?
Document the property’s use and the proposed replacement property. The IRS describes Section 1031 exchanges in terms of business or investment real property. Eligibility needs a fact-specific review.
2. Who owns the property?
Bring the current ownership and entity documents to the CPA and attorney. Identify who is selling and who expects to acquire replacement property, rather than assuming the names and structures are interchangeable.
3. Who is coordinating the exchange?
Identify the qualified intermediary and the roles of the CPA, attorney and broker before the closing. Establish who will answer timing, document and funds-handling questions.
4. Which dates need to be tracked?
Build a transaction calendar with the professional team. Ask the qualified intermediary and tax advisor to confirm the applicable identification, completion and filing requirements.
5. What replacement-property questions remain?
Organize questions about financing, ownership, property due diligence and investment risks. If a DST is being considered, include sponsor responsibilities, fees and liquidity limitations in the education discussion.
6. Which records will support reporting?
Ask the tax professional which transaction documents and figures will be needed. Form 8824 is the IRS reporting form for like-kind exchanges; the current instructions are a useful research starting point.
Primary references: IRS like-kind exchange overview and IRS Form 8824 resources. Educational discussion only; review current rules and individual facts with the appropriate professionals.