The information below are simply guidelines.  If you have specific questions regarding your client's situation, or are unsure about your client's eligibility for an exchange, please call Cooney & Associates, Inc.

Consult with Client Prior to Exchange

1.                  Review why client is doing the exchange.

2.                  Be sure property is like-kind.

3.                  Complete a worksheet to compute:

1. Total Gain
2. Taxable Gain
3. Basis of New Property

4.                  Be careful if it is a multiple property exchange.

5.                  Explain rules of delayed exchanges.

1. 45/180- day requirements
2. Use qualified intermediary – NOT YOU

Review Escrow Documents

1.                  Be sure “intent” is fully established.

2.                  Watch for “Constructive receipt” in a delayed exchange.

Prepare Tax Return – Taxpayer’s Accountant

1.                  If delayed exchange, wait until the exchange is completed.

2.                  Use worksheet as back-up detail.

3.                  Make copies of escrow documents for file.