Asset1031 Exchange Checklist

Checklist for Executing a Section 1031 Exchange

____ Confirm the sale of the Relinquished Property is eligible for a 1exchange. Consult with a tax advisor.

____ Ensure the sale contract to sell the Relinquished Property contains a provision (“exchange cooperation clause”) requiring the buyer to comply with 1031 exchange and that the contract may be assigned to a Qualified Intermediary.

____ Notify the Asset1031 for all required documentation that must be signed for legal compliance, including assignment of the sale contract and sale proceeds to be Asset1031.

____ In preparation for the closing, review the settlement statement to maximize the taxes that may be deferred.

____ At the closing on the sale of the Relinquished Property, ensure you receive no sale proceeds and all sales proceeds that are to be part of the 1031 exchange are delivered to Asset1031.

____ Identify the Replacement Property within 45-days of the closing on the sale of the Relinquished Property. More than one property may be identified (up to 3 properties may be identified). Consult with the Asset1031 to ensure proper identification documentation is signed.

____ Negotiate and execute purchase and sale agreement to purchase the Replacement Property. Ensure the purchase and sale agreement has: (1) a closing date before the earlier of within 180-days of the sale of the Relinquished Property or before the filing date of the when taxes are due – including on time tax extensions – for the year the Relinquished Property was sold; and (2) a exchange cooperation clause requiring the seller to comply with the 1031 exchange and allowing the contract to be assigned to Asset1031.

____ Notify Asset1031 that you are under contract to purchase and the Replacement Property and execute required documentation including assignment of the sale contract to Asset1031.

____ In preparation for the closing on the purchase of the Replacement Property, review the settlement statement to maximize the taxes that may be deferred.

____ Close on the Replacement Property. Notify your tax advisor and provide closing documentation in order for the 1031 exchange to be properly reported to the IRS.