A potential tax-deferred exchange should be discussed before the relinquished property closes. The owner, qualified intermediary, tax advisor, attorney, lender, escrow team, and real estate professionals need a shared timeline and clear responsibilities. Brokerage work can help define sale positioning, replacement-property criteria, market availability, financing assumptions, due-diligence needs, and backup options.
The replacement search should consider more than headline yield. Review location, tenant quality, lease structure, remaining term, capital requirements, insurance, environmental conditions, management intensity, financing, ownership goals, and exit flexibility. Identification and closing rules are technical and time-sensitive, and individual eligibility varies.
This article is educational rather than tax or legal advice. Owners should obtain advice from their qualified intermediary, tax professional, and attorney before structuring or relying on an exchange.
