Nine Basic Steps to a Successful 1031 Exchange
- Exchanger enters into an Exchange Agreement with Brookline Bancorp 1031 Exchange Services, the Qualified Intermediary (QI).
- Exchanger assigns sales contract to sell relinquished property to QI.
- Exchanger conveys title of relinquished property directly to purchaser at closing.
- Net sales proceeds are sent to QI at closing.
- Exchanger identifies replacement property within forty-five days.
- Exchanger contracts to purchase replacement property.
- Exchanger assigns purchase contract to buy replacement property to QI.
- Closing of the replacement property occurs within 180 days.
- QI purchases replacement property with exchange funds from the sale of the relinquished property and directs the seller to convey.
IRS CIRCULAR 230 DISCLOSURE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code.