// SERVICE-02 — 1031 EXCHANGE DOCUMENTATION
Timeline tracking, replacement property financial parameters, and deferred gain schedule preparation — so the accounting behind your 1031 exchange is organized, accurate, and ready to support your qualified intermediary and tax preparer.
// BLOCK 01 — WHAT THIS DELIVERS
A 1031 exchange involves strict deadlines, specific financial calculations, and documentation requirements that don't leave much room for gaps. The qualified intermediary handles the legal mechanics. Your tax preparer handles the return. What falls between those two — the financial record-keeping that ties the exchange together — is what this service addresses.
When the exchange closes and your CPA needs to report the deferred gain, they'll have a complete set of organized financial workpapers, not a collection of settlement statements and estimates to sort through themselves.
// OUTCOMES — WHAT YOU CAN EXPECT
// BLOCK 02 — THE CHALLENGE
SITUATION A
Qualified intermediaries manage the exchange funds and legal structure. Tax preparers file the return. Neither party is specifically responsible for the financial calculations and documentation that bridge those two roles. That gap — tracking adjusted basis, calculating deferred gain, documenting replacement property values — often falls on the investor themselves, or gets reconstructed hastily at tax time.
SITUATION B
The 45-day identification period and 180-day exchange period are hard deadlines. Knowing whether a potential replacement property meets the financial requirements of the exchange — whether the value is sufficient, whether boot will be recognized — requires calculations that should be done before decisions are made, not after.
SITUATION C
The basis established in a 1031 exchange carries forward into future transactions. A future sale, another exchange, or a refinancing may depend on records from an exchange done years earlier. Documentation assembled quickly at filing time has a way of developing gaps that cause problems long after the exchange itself is closed.
// BLOCK 03 — THE APPROACH
The work begins when the relinquished property goes under contract. From that point, the exchange timeline is tracked against the key deadlines, and the financial data from the sale — adjusted basis, realized gain, amount realized — is documented as the transaction moves forward.
During the identification period, replacement property financial parameters are calculated based on the exchange balance and your goals for the transaction. Once replacement property is identified and under contract, the acquisition figures are incorporated and the deferred gain schedules are prepared.
The deliverable is a complete workpaper package — organized, clearly labeled, and formatted for handoff to your CPA. It covers the relinquished property disposition, the replacement property acquisition, basis carry-forward, any boot recognized, and the schedules needed for Form 8824.
// COMPONENT 01
Exchange initiation date, 45-day identification deadline, and 180-day closing deadline tracked and documented throughout the process.
// COMPONENT 02
Minimum value thresholds, equity requirements, and mortgage boot considerations calculated before you commit to a replacement property.
// COMPONENT 03
Realized gain, recognized gain, deferred gain, and carry-forward basis — calculated and documented to support accurate Form 8824 preparation by your CPA.
// COMPONENT 04
Works alongside your qualified intermediary — reviewing exchange documents, aligning on figures, and ensuring the financial records match what the intermediary is reporting.
// BLOCK 04 — THE PROCESS
01
— INITIATION
Once the relinquished property sale is under contract and a qualified intermediary is engaged, the documentation work begins. Basis records, prior depreciation, and settlement figures are collected and reviewed.
02
— IDENTIFICATION
During the 45-day identification window, replacement property financial thresholds are calculated — minimum value, equity requirements, and any boot implications — so you can evaluate candidates with clear numbers in hand.
03
— ACQUISITION
Once the replacement property closes, acquisition settlement figures are incorporated. The deferred gain calculation is finalized, carry-forward basis is established, and boot recognition is assessed where applicable.
04
— DELIVERY
A complete, organized documentation package is delivered — ready to hand to your tax preparer for Form 8824 preparation. No reconstruction required on their end.
// BLOCK 05 — INVESTMENT
This is a per-exchange fee covering the full documentation scope from initiation through workpaper delivery. The fee applies to a single exchange transaction — one relinquished property and one or more replacement properties within that exchange.
Investors doing multiple exchanges within a year may discuss a consolidated arrangement. The scope of each exchange is reviewed before the engagement begins to confirm the fee is appropriate for the complexity involved.
If you're already a monthly accounting client, 1031 exchange documentation can be handled as part of the ongoing engagement with adjusted terms — that's a conversation to have when the exchange is being planned.
// WHAT'S INCLUDED
Per-exchange fee · USD
// BLOCK 06 — HOW PROGRESS IS MEASURED
// INDICATOR 01
During the identification period, you'll have actual financial thresholds for replacement properties — not estimates. Knowing the minimum value needed to defer all gain, and the equity level required to avoid boot, changes how you evaluate candidates.
// INDICATOR 02
A well-organized workpaper package typically reduces the back-and-forth between investor and tax preparer at filing time. The CPA has what they need to prepare Form 8824 without having to track down settlement statements or reconstruct basis calculations themselves.
// INDICATOR 03
The basis established in this exchange will matter in future transactions. Documentation prepared carefully now creates a clean record to build from — whether the next move is another exchange, a refinance, or an outright sale.
// INDICATOR 04
By reviewing exchange documents and aligning figures with your qualified intermediary during the process, the financial records and the intermediary's accounting match — which avoids discrepancies that sometimes surface only when the return is being prepared.
// INDICATOR 05
Where boot is involved — whether from cash received, mortgage reduction, or property value differences — the amount is calculated explicitly and documented before the exchange closes. There are no surprises about recognized gain at filing time.
// TIMELINE
The earlier in the process this work begins, the more useful it is. Ideally, the engagement starts when the relinquished property is under contract — before closing, so the identification period parameters are ready before the 45-day window opens.
// BLOCK 07 — OUR COMMITMENT
Exchange documentation has a real impact on how a transaction is reported. When something in the financial picture isn't straightforward — an unusual settlement term, a partial exchange, a situation that requires your CPA's input — that gets flagged directly rather than handled silently.
The introductory conversation before the engagement begins covers the specifics of your exchange and confirms this service addresses what you need. If your situation calls for something outside this scope, that's said clearly.
// BLOCK 08 — GETTING STARTED
01
— CONTACT
Send a message describing your exchange — the relinquished property, approximate sale price, and where you are in the process. Earlier contact means more useful support during the identification period.
02
— REVIEW
A short call to understand the specifics — prior basis, existing depreciation, the QI you're working with, and your goals for the exchange. That's enough to confirm fit and set expectations for the work.
03
— DOCUMENTS
Settlement statement for the relinquished property, prior depreciation schedules, and any records from the QI are collected and reviewed. The documentation work begins from there.
04
— DELIVERY
Once the replacement property closes, the complete workpaper package is finalized and delivered — ready for your CPA to prepare the return without additional reconstruction.
// SERVICE-02 — NEXT STEP
Getting the financial documentation right from the beginning makes the exchange process more manageable and the year-end handoff to your CPA straightforward. A short conversation is usually enough to understand what your exchange requires and whether this service is the right fit.
Get in Touch →// EXPLORE — OTHER SERVICES
// SERVICE-01
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// SERVICE-03
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