Trade
Selling one rental to buy the next
A like-kind exchange lets an owner of investment property put off the tax on a sale by buying another property within strict deadlines. The rules are short and unforgiving, and the clock starts on the day the first sale closes.
We don't give tax advice. We write the exchange into the sale contract, review the agreement with the intermediary, and keep the calendar with you, so that your accountant has something firm to work from.
The sale contract, written to allow an exchange
The agreement with the qualified intermediary
The purchase contract for the replacement property
A shared calendar of every exchange deadline
What the flat fee includes
The intermediary charges its own fee, and the fee doesn't cover title insurance, recording fees or transfer taxes. We don't prepare tax returns or advise on tax.
Before you sell
Adding the exchange language to the sale contract while the buyer is still willing to sign it.
The intermediary
Reading its agreement and confirming who holds the proceeds, and when they can move.
The calendar
The two dates that decide an exchange, written down with the days counted for you.
The next purchase
The replacement contract, title commitment and closing, reviewed as in any purchase.
Questions from landlords and investors
Your accountant answers the tax questions. We answer these.
When should I call you about an exchange?
Before you sign the sale contract for the property you're giving up. The exchange has to be in the paperwork from the start, and adding it afterward depends on the buyer's goodwill.
Can you find the replacement property?
No. Finding the property is for you and your agent. We make sure the contract you sign for it fits the exchange, and that the title is clean.
What if I can't find a replacement in time?
Then the exchange doesn't happen, and the sale is taxed as a sale. We tell you in advance what the deadlines are, so you can decide early whether to keep looking.
Planning to sell a rental?
Tell us the property, the buyer’s closing date if you have one, and the name of your accountant.