We are not your tax advisor, and any exchange service that positions itself that way should raise a red flag. Our role is to source and underwrite replacement property, coordinate the property-level documentation, and keep the transaction timeline visible — the tax treatment, the basis calculations, and the ultimate filing decisions belong to your CPA and, where warranted, a tax attorney. That division of labor works well when it is set up early, because the property decisions we help you make — how much debt to carry, whether to accept any boot, which replacement structure fits your goals — all have tax consequences your advisor needs to weigh in on before the identification list is filed, not after.
What We Do and Do Not Advise On
We evaluate replacement properties, verify rent rolls and operating statements, and confirm that a candidate's documentation will hold up to lender and advisor scrutiny. We do not tell you whether a specific amount of boot is acceptable for your tax situation, whether a DST fits your estate planning goals better than direct ownership, or how a given purchase affects your overall basis calculation. Those are CPA and tax-attorney questions, and we flag them explicitly rather than guessing at an answer that belongs to someone else's expertise, since a wrong guess on a tax question can be far more costly than simply waiting a day for the right advisor to weigh in.
Where CPA Coordination Actually Matters in the Timeline
The most useful point to involve your CPA is before you sign a contract to sell the relinquished property, not after the identification deadline is already running. A CPA who understands the sale price, expected debt payoff, and rough proceeds figure early can flag boot exposure or basis issues while there is still time to adjust the replacement strategy — adding a DST allocation, adjusting debt on the replacement property, or reconsidering the timing of the sale itself. Bringing the CPA in during the final week of the 45-day window leaves far fewer options if a problem surfaces.
Information Your CPA Needs Before Filing
To prepare Form 8824 and confirm your exchange was executed correctly, your CPA generally needs:
- The exchange agreement and assignment documents from the qualified intermediary
- Closing statements for both the relinquished sale and the replacement purchase
- A debt reconciliation showing old debt paid off against new debt assumed
- Any boot received, including cash, non-like-kind property, or debt relief not offset by new debt
- The written identification filed with the qualified intermediary, for the record
We assemble this file as the exchange progresses so it is ready when your CPA needs it, rather than scattered across emails from three different parties.
Boot and Basis Questions Belong With Your Advisor
Boot — cash or non-like-kind value received in the exchange — and its effect on your basis and recognized gain are calculations your CPA runs, not something we estimate on your behalf. If a replacement property's price comes in below your relinquished property's net sale proceeds, or if debt on the new property is lower than debt paid off on the old one, that gap may create boot, and your CPA needs the actual numbers early enough to plan around it rather than discover it at filing time.
Building the File So Your CPA Isn't Reconstructing It Later
We keep a running record of every document and decision as the exchange moves, beyond just the final closing package, so that when your CPA sits down to prepare Form 8824, they are reviewing an organized file rather than reconstructing the transaction from memory and scattered paperwork the following spring. For a Rhode Island exchange running through an attorney closing, that record also includes copies of the closing statements from both the relinquished sale and the replacement purchase, since those two documents are usually the first thing a CPA asks for once the transaction is complete. Investors who wait until tax season to assemble this file often find that a broker or seller's attorney has moved on and is slower to respond, which is one more reason to build the record while the exchange is still active rather than afterward.
Common 1031 Exchange Questions
Are you my tax advisor for this exchange?
No. We source and underwrite replacement property and coordinate documentation; your CPA or tax attorney handles the tax treatment, basis calculations, and filing decisions.
When should I loop in my CPA, before or after identifying a replacement property?
Before, ideally as soon as your relinquished property is under contract. A CPA who sees the numbers early can flag boot or basis issues while there is still time to adjust the replacement strategy.
What is Form 8824 and who prepares it?
Form 8824 is the IRS form reporting a like-kind exchange, and it is prepared by your tax preparer using the exchange documentation, closing statements, and debt figures assembled during the transaction.
What happens if my CPA disagrees with a property I've identified?
That disagreement should surface before the 45-day deadline, not after, which is exactly why we recommend involving your CPA early enough to weigh in on the identification list itself.
Do I need a Rhode Island-based CPA for a Rhode Island exchange?
No — the exchange rules are federal, so any CPA experienced with 1031 transactions can handle the filing, though familiarity with Rhode Island's attorney-closing practice can make coordination somewhat smoother.
