Post-Exchange Tax Filing Checklist

I had mortgage boot (debt reduction)

I achieved full deferral (no boot)

Settlement Statement for Replacement Property (HUD-1 or Closing Disclosure)

Exchange Agreement with Qualified Intermediary

Identification Notice (45-day identification document)

Assignment of Purchase Agreement (if applicable)

Original Purchase Documents for Property Being Sold

Capital Improvement Records

Depreciation Schedules

Mortgage Payoff Statements

1099-S Form (if received)

Prior Year Tax Returns

State Tax Forms (for states where properties are located)

Enter complete description of replacement property

Enter date property being sold was transferred (closing date)

Enter date replacement property was received (closing date)

Enter related party information (if Line 5 is Yes): name, address, and relationship

Enter cash paid or FMV of other property given up

Calculate adjusted basis of property being sold: Original cost + Capital improvements - Depreciation

Calculate realized gain or loss (Line 12 + 13 - 14)

Calculate boot received: Cash + Property boot + Mortgage boot

Calculate recognized gain (lesser of Line 15 or Line 16)

Calculate adjusted basis of replacement property: Line 12 + 13 - 15 + 17

Sign and date Form 8824 and attach to Form 1040

Check if your state recognizes 1031 exchanges

Identify multi-state exchange requirements

Determine if gain must be apportioned between states

California: Complete Form 3840 (Like-Kind Exchanges) if applicable

New York: Complete Form IT-225 (New York State Modifications) if applicable

Pennsylvania: Note that no 1031 deferral recognized for out-of-state property

Check if state withholding was taken at closing and file for refund if applicable

Allocate basis between land and building

Separate out personal property (if applicable)

Determine in-service date (date replacement property placed in service)

Apply mid-month convention for depreciation

Continue depreciation method from property being sold

Prepare updated depreciation schedule showing carryover basis, land/building allocation, method, and recovery period

All settlement statements (HUD-1, Closing Disclosures)

Exchange agreement with Qualified Intermediary

Assignment documents

Identification notice (45-day document)

QI final accounting statement

Wire transfer confirmations

Original purchase documents for property being sold

Capital improvement receipts

Depreciation schedules (all years owned)

Form 8824 from any previous exchanges

Appraisals

Written communications with QI, CPA/attorney, and any IRS notices

Organize physical storage with labeled folders

Scan all documents to PDF and store in cloud service with backups

Create master document list with brief descriptions and file locations

Confirmed filing for correct year (year property being sold was transferred)

Using carryover basis (Line 18) not purchase price for replacement property

Subtracted accumulated depreciation from original basis

Calculated and reported mortgage boot (if applicable)

Used complete property descriptions with full addresses

Addressed state tax filing requirements

Attached all required schedules and statements

Continuing depreciation correctly (not restarting recovery period)

Scheduled consultation with CPA experienced in 1031 exchanges

If boot resulted in tax liability, paid by April 15 to avoid interest

Checked state-specific deadlines (may differ from federal)

Marked calendar with all applicable deadlines and set reminders 2 weeks before