By Kenneth Millar, Founder and Principal Managing Partner, SREI Group · November 2026
The smoothest 1031 exchanges start before the property sells. Once the sale closes, you have 45 days to identify replacement property and 180 days to complete the purchase, so there is little time to gather facts afterward. Use this checklist to organize the details that shape your exchange, share it with your CPA, and bring it to your first conversation with SREI Group.
What Should I Have Ready Before a 1031 Exchange?
Have answers, or at least estimates, for the questions below. Each one affects how much gain you may be able to defer, which replacement options fit, and how much time you will have to decide.
The sale
- Is the property listed, under contract or already sold?
- What is the expected or actual closing date?
- What is the sale price, and what are the estimated net proceeds after closing costs?
- Is the property real estate held for investment or business use (not your primary residence)?
The numbers
- How much mortgage debt will be paid off at closing? To defer all of the gain, the replacement property generally needs equal or greater value and debt, or added cash.
- Do you know your adjusted basis and the depreciation you have taken? Your CPA can estimate the capital gains and depreciation recapture an exchange may defer.
- Do you plan to keep any proceeds as cash? Cash kept from the sale is generally taxable.
Ownership and title
- How is the property titled (individual, joint, trust, LLC or partnership)? The same taxpayer that sells must generally buy the replacement property.
- Who are the owners, and do they all agree on the plan?
- How long have you owned the property?
The exchange
- Have you engaged a Qualified Intermediary (QI) before closing? Proceeds must not pass through your hands.
- Have you marked your 45-day identification deadline and 180-day closing deadline? Find your dates with our 1031 Exchange Deadline Calculator.
- If you are considering a Delaware Statutory Trust (DST), do you meet the accredited investor standard required for most DST offerings?
Your goals
- Is steady income, less hands-on management, diversification or estate planning most important to you?
- Would you like the option to own property directly again later, or to move toward an UPREIT (721 exchange) in the future?
- Who else should be part of the conversation: your CPA, attorney or financial advisor?
Get a Printable Copy
Prefer to work on paper? Enter your first name and email, and we will send you a printable version of this checklist to fill in and bring to your CPA or your intro call.
Where Does a Delaware Statutory Trust (DST) Fit In?
A Delaware Statutory Trust (DST) is one replacement option for investors who want to complete a 1031 exchange without taking on property management. A DST interest qualifies as “like-kind” real property under IRC Section 1031, so proceeds from the sale of an investment property can be reinvested into a DST without immediately triggering capital gains tax. The gain is deferred, not eliminated. DST interests are illiquid, and the sponsor, not the individual investor, controls management and the timing of the sale. Learn more about Delaware Statutory Trusts and how some investors later move from a DST into an UPREIT (721 exchange).
Frequently Asked Questions
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When should I start planning a 1031 exchange?
Start before the sale closes. A Qualified Intermediary generally needs to be in place before closing, and the 45-day and 180-day deadlines begin when the sale closes. Starting early leaves more time to review replacement options.
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What happens if I miss the 45-day or 180-day deadline?
The exchange generally fails, and the gain becomes taxable for the year of the sale. The deadlines are not extended except in limited cases, such as federally declared disasters. The 180-day period can also end sooner if your tax return for the year of the sale is due first, unless you file an extension.
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Can I keep some of the cash from my sale?
Yes, but cash you keep is generally taxable. Debt paid off at closing that is not replaced with new debt or added cash can also be taxable.
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Do I need every answer before talking with SREI Group?
No. Bring what you have, and we will help you work through the rest and review replacement options that may fit your goals.
Talk Through Your Options
Tell us a little about your situation and Kenneth Millar will reach out to schedule a conversation about 1031 exchanges, DSTs, Qualified Opportunity Funds and other private market real estate.
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This checklist is for general educational purposes only and is not tax or legal advice. Consult your tax and legal advisors about your specific situation.