Put the exchange team and documents in place before Day 0.
A deferred exchange generally requires a qualified intermediary before the relinquished property transfers. Share the draft closing statement, ownership structure, estimated basis, debt payoff, and expected closing date with the QI, CPA, and attorney early enough to resolve entity, title, related-party, and state-tax questions.
Actual or constructive receipt can jeopardize deferral. The qualified intermediary should be engaged and the exchange documents executed before closing.
Translate the sale into a replacement-property brief.
Start with expected gross sale price, mortgage payoff, sale expenses, likely exchange proceeds, and any cash available beyond those proceeds. For a common full-deferral objective, owners evaluate equal-or-greater replacement value, reinvestment of net exchange proceeds, and how relieved debt will be offset with replacement debt or additional cash.
Understand equity, debt relief, and potential boot →Build the Day 45 shortlist before the clock starts.
The Dallas-Fort Worth market may be familiar, but familiarity is not a substitute for underwriting. Compare tenant credit, lease term, rollover exposure, building utility, replacement cost, local supply, financing, environmental and physical diligence, fees, conflicts, liquidity, and realistic exit paths. Out-of-market property can broaden the search, but adds market, sponsor, and execution diligence.
- Primary replacement criteria and backup choices
- Maximum equity and debt capacity
- Required income, hold period, and liquidity constraints
- Financing and diligence milestones that fit inside 180 days
- Identification-rule strategy confirmed with the QI
Verify local property facts before relying on the shortlist.
For a Dallas or Tarrant County candidate, start with the appraisal-district record, then confirm ownership, legal description, zoning, leases, title, survey, environmental condition, and physical condition through the governing records and qualified advisers. Appraisal and GIS records are screening tools, not substitutes for title, survey, zoning, tax, legal, or engineering diligence.
Use each adviser for the right decision.
Ask the qualified intermediary
What must be signed before closing? How should identification be delivered? Which costs can be paid from exchange funds? What deadlines apply to this exact sale?
Ask the CPA and attorney
What is the adjusted basis and estimated gain? Does the taxpayer and title structure align? Are there state, related-party, partnership, debt, or securities issues?
MAG is not acting as a qualified intermediary, tax adviser, or attorney through this website. MAG can help organize planning facts and evaluate real-estate and sponsor diligence questions.
Primary federal sources
IRS Instructions for Form 8824 ↗IRS Publication 544 ↗IRS Like-Kind Exchanges: Real Estate Tax Tips ↗This material is general education, not tax, legal, accounting, investment, or securities advice and not a recommendation of any property or offering.