1031 Rules · 5 min read
The Most Common 1031 Exchange Mistakes
Avoidable errors that cause exchanges to fail or create taxable boot.
Planning too late
The intermediary must be engaged before closing. Once you receive the proceeds, it's too late.
Touching the money
Even briefly receiving funds can disqualify the exchange.
Single identification
Identifying only one property leaves no fallback if the deal fails.
Ignoring debt
Under-replacing mortgage debt can create taxable boot.
Mismatched titling
The taxpayer who sells generally must be the same taxpayer who buys.
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