Reporting Your 1031 Exchange

You’ve just completed a §1031 exchange – you closed on a good replacement property (or two), used all the funds in your escrow account, and believe your capital gains taxes on the sale of your original investment property will now be fully deferred!  You’re done, right? 

In fact, you’re almost done: all that’s left is reporting your exchange on your taxes, a crucial part of the exchange process that you don’t want to leave behind.

But that’s just for your CPA/tax preparer to do, right?

Your CPA/tax preparer has certainly done a lot of hard work to help you out; they may have even recommended that you do an exchange to begin with.  As your CPA/ tax preparer knows, to report your exchange you’ll have to file IRS Form 8824 with your tax return.  What they might not know is that Exchange Authority provides a finished draft Form 8824 for you and your CPA/ tax preparer, complete with all supporting documentation, at the end of your exchange period!  All your CPA/tax preparer will need to do is confirm the final figures contained in the form we send them.  Filling out this form is a service that we provide with every exchange, at no extra cost, so you can be sure that we’ve had a lot of practice. 

Well, that’s great, but what will your CPA/ tax preparer think?

CPAs/ tax preparers have told us that we save them anywhere from three to five hours of work (sometimes even longer!), with our draft of your Form 8824, and supporting documentation, for reporting your exchange on your taxes.

Don’t forget that even a “failed” exchange – an exchange in which no qualifying replacement property was purchased – still has to be reported!  Exchange Authority has you covered no matter what type of exchange you do, or how it turns out.  Don’t be left behind when it comes to that final piece, reporting your exchange, and contact Exchange Authority for full exchange service all the way through Form 8824.  After all, there’s a reason that we’re “the experts other experts turn to”!

Start A Complimentary Consultation with Us

A properly executed 1031 exchange defers all long-term capital gains taxes.

© 2023 All Rights Reserved.

Scroll to Top