A 1031 exchange can defer every dollar of tax on a property sale. The accounting decides whether it actually does.

Your qualified intermediary holds the funds. We handle the numbers: boot analysis before it becomes a surprise, basis that carries over correctly, and Form 8824 reporting with workpapers behind every figure.

Schedule K&A — The Exchange §1031

Identify replacement45 days

Close replacement180 days

Boot exposureminimized

Carryover basistracked

Form 8824filed

Gain recognized$0.00

EVERY DOLLAR DEFERRED — WORKPAPERS BEHIND EVERY FIGURE

A failed or partially taxable exchange doesn’t announce itself at closing.

Section 1031 lets you sell investment real estate and roll the full proceeds into replacement property without recognizing gain. The concept is simple; the execution is not. The deadlines are rigid: 45 days to identify replacement property in writing, 180 days to close. Any cash you receive, any reduction in debt not replaced, and certain closing costs become boot, and boot is taxable.

Basis has to carry over and adjust correctly so that depreciation on the new property is right for decades. And all of it has to be reported precisely on Form 8824. Mistakes show up on a tax return months after closing, when nothing can be fixed. The investors who use exchanges well treat the accounting as part of the deal, not an afterthought.

From a single trade-up to a reverse exchange.

Rental property investors

Landlords and portfolio owners trading up, consolidating, or repositioning properties.

Commercial investors

Commercial property owners exchanging into larger or more passive assets, including DST and TIC interests.

Complex exchangers

Investors using reverse, improvement, or multi-property exchanges where the accounting gets genuinely complicated.

Investors deciding whether to exchange

Anyone who wants to model an exchange against an outright sale before committing.

Every stage of the exchange, accounted for.

Planning before you list. Pre-sale modeling: the exchange versus an outright sale, side by side, so you choose with full information.

Boot analysis. Identifying taxable cash boot and mortgage boot before closing, and structuring to minimize it.

Basis and depreciation. Carryover basis, excess basis, and the depreciation schedule for the replacement property, including bonus depreciation and cost segregation opportunities on the new asset.

Form 8824 reporting. Form 8824 prepared with supporting workpapers for every figure, plus any state reporting.

Coordination. Working with your qualified intermediary, attorney, lender, and title company through both closings.

Advanced structures. Multi-property, reverse, improvement, and partial exchanges.

Long-term tracking. Tracking deferred gain and depreciation recapture across the life of your portfolio, so the eventual exit is planned, not discovered.

Three stages, timed around your closings.

01

Before you list

Call us when you’re considering a sale. We model the exchange, estimate the boot exposure, and flag the timing issues. This is when the most value is created.

02

Through the exchange

We coordinate with your qualified intermediary and closing team, review the settlement statements, and confirm the numbers as they happen.

03

Reporting and beyond

We prepare Form 8824 and the replacement property’s depreciation schedule, then carry the deferred gain forward in your file so future decisions are made with the full picture.

A core specialty, not an occasional task.

This is what we do. 1031 exchange accounting is a core specialty, not an occasional task. We know where boot hides and how basis goes wrong.

Integrated with your whole portfolio. The exchange is one move in a larger strategy. We pair it with cost segregation on the replacement property, depreciation planning, and eventual exit modeling.

Built to hold up. Every exchange is documented to withstand examination, prepared by a CPA who also holds Enrolled Agent representation rights.

Current on the new law. Jesse is the author of The One Big Beautiful Bill, the Amazon #1 best seller on the 2025 tax law that made 100% bonus depreciation permanent. That permanence changes the math on every replacement property.

Questions we’re asked before the first call.

What are the deadlines in a 1031 exchange?

Two, and they’re strict: 45 days from the closing of your sale to identify replacement property in writing, and 180 days to close on it. The IRS does not extend them for a deal that falls through. We help you plan around them from the start.

What is boot in a 1031 exchange?

Boot is anything you receive in the exchange that isn’t like-kind property: cash left over, a reduction in mortgage debt that isn’t replaced, or certain non-qualifying closing costs. Boot is taxable to the extent of your gain. Identifying it before closing is the single most valuable thing an accountant does in an exchange.

Do I need a qualified intermediary and an accountant?

Yes, and they do different jobs. The qualified intermediary holds your proceeds and handles the exchange documents; you cannot touch the funds yourself. The accountant handles the tax side: boot, basis, depreciation, and Form 8824. Neither replaces the other.

Can I do a 1031 exchange on a short-term rental or a property I’ve lived in?

Investment and business-use property qualifies; a primary residence does not. Short-term rentals held for investment generally can qualify, but personal use and the property’s history matter. Talk to us before you decide; the facts determine the answer.

What happens to depreciation on the replacement property?

Your basis carries over from the relinquished property and is increased by any additional investment. Depreciation continues on the carryover portion and starts fresh on the excess. Cost segregation on the replacement property can accelerate deductions on that excess basis significantly.

Can you help if my exchange already closed?

Yes. We prepare Form 8824 and the basis calculations for exchanges completed with other advisors, and we can review prior exchanges for errors in reported gain or basis.

Thinking about selling an investment property?

Call us before you list. The exchange decision, the boot exposure, and the timing all get
easier when the accounting is part of the plan from day one.