1031 Exchange Document Checklist

Stay organized throughout your 1031 exchange with this comprehensive checklist.

Track your progress, add notes about document locations, and ensure you have everything needed for IRS compliance and professional coordination.

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Property Ownership Records

Original property deedCritical
Title insurance policy from purchase
Current title report or owner's policy
Property tax statements (recent 2 years)
HOA documents (if applicable)
Entity formation documents (if owned by LLC, partnership, or trust)

Financial Records

Original purchase settlement statement (HUD-1 or Closing Disclosure)Critical
Mortgage statements showing current balance
Mortgage payoff statement (get 30 days before closing)Time-Sensitive
Property insurance declarations page
Loan documents (if needed for new lender)

Capital Improvements Documentation

Receipts for all capital improvements (roof, HVAC, additions, major renovations)
Contractor invoices and paid receipts
Building permits for improvements
Before/after photos of improvements
Improvement timeline log

Depreciation Records

Depreciation schedules from all years of ownershipCritical
Section 179 or bonus depreciation records
Cost segregation study (if performed)
Prior year tax returns showing depreciation (last 3-5 years)

Purchase & Ownership History

Original purchase agreement
Appraisal from time of purchase
Survey (if available)
Environmental reports (Phase I/II if commercial)
Rent rolls (if multi-unit or commercial)
Lease agreements (current tenants)

Qualified Intermediary (QI) Agreements

Exchange Agreement (signed contract with QI)CriticalTime-Sensitive
QI engagement letter
QI's taxpayer identification number (for Form 8824)
Proof of QI's errors & omissions insurance
QI fidelity bond information

Purchase Agreement Assignments

Assignment of Purchase Agreement to QI (for property being sold)CriticalTime-Sensitive
Notice of Assignment sent to buyer
Buyer's acknowledgment of assignment
Addendum to purchase agreement (exchange language)

Pre-Closing Communications

Written instructions to QI
Exchange cooperation clause in purchase agreement
Direct deeding instructions (if applicable)
Wire instructions from QI for exchange funds

Closing Settlement

Final settlement statement (HUD-1 or Closing Disclosure)Critical
Copy of executed deed transferring property to buyerCritical
Deed recording confirmation/receipt
Bill of sale (if personal property included)
FIRPTA affidavit (if applicable)
1099-S form (provided by closing agent)

Financial Confirmations

Wire confirmation showing funds sent to QICritical
QI acknowledgment of receipt of exchange funds
QI escrow account statement
Proof of mortgage payoff
Final utility bills (if responsible)

Exchange Documentation

Assignment of sale proceeds to QICritical
Exchange closing statement from QI
Notice to QI of closing completion
Copy of escrow instructions referencing exchange

Identification Documentation

Formal identification letter to QI (listing replacement properties)CriticalTime-Sensitive
QI acknowledgment of identificationCritical
Property addresses and legal descriptions
Signed identification form (3-property, 200% rule, or 95% rule)
Date stamp proof of identification within 45 daysCritical

Purchase & Closing Documents

Replacement property purchase agreementCritical
Assignment of purchase agreement from QI
Notice of assignment to seller
Seller's acknowledgment of assignment
Final settlement statement (HUD-1 or Closing Disclosure)Critical
Deed showing transfer to you (or your entity)Critical
Deed recording confirmation
Title insurance policy (owner's policy)
New mortgage documents (if applicable)
Homeowner's insurance binder

Exchange Completion

Wire instructions from QI for funding purchase
Proof of funds transfer from QI exchange account to closingCritical
QI exchange completion statementCritical
Remaining proceeds distribution (if any)
Final exchange statement showing all transactions

Tax Filing Documents

IRS Form 8824 (Like-Kind Exchanges)Critical
Form 8824 instructions and worksheet
State-specific exchange forms (if required)
Documentation supporting all numbers on Form 8824
Basis calculation worksheet for replacement propertyCritical
Depreciation recapture calculation

Complete Exchange Record Set

Chronological log of all exchange events and dates
All correspondence with QI (emails, letters, notices)
All correspondence with closing agents
Timeline documentation (proving 45/180 day compliance)
Professional advice received (CPA letters, attorney opinions)

Professional Documentation

CPA engagement letter and tax advice
Attorney opinion letters (if obtained)
Real estate broker communications
Lender documents and communications
Appraisals (sold and replacement properties)

Retention & Organization

Digital backup of all documents (cloud storage recommended)
Physical file organization system
Document index/table of contents
Retention schedule (recommend 7+ years minimum)
Annual tax return with Form 8824 attached

Organization Tips

Digital Organization

Create a cloud folder (Google Drive, Dropbox) organized by phase. Scan all physical documents and store digital copies. Share folder access with your QI, CPA, and attorney for easy collaboration.

Physical File System

Use a dedicated binder with tabbed sections for each phase. Store originals of critical documents (deeds, exchange agreements, closing statements) in a fireproof safe or safe deposit box.

Retention Schedule

Keep all 1031 exchange records for at least 7 years after filing your tax return. However, basis information should be kept indefinitely as it carries forward to future properties.

Communication Log

Maintain a chronological log of all communications with your QI, closing agents, and professionals. Include dates, topics discussed, and any deadlines mentioned.