Page 353 - Small Business IRS Training Guides

11. Interview the taxpayer and determine the following:

a. An overview of the exchange transaction, including the parties involved, a timeline, and how the exchange

was executed;

b. A description of the properties exchanged;

c. How the exchanged properties were and are used;

d. The taxpayer's relationship to the exchange facilitators (the QI and EAT, if used) and to other parties to
the exchange;

e. Whether the taxpayer owns property previously acquired in a §1031 exchange;

f. Whether the taxpayer engaged in any exchanges during the current year that were not reported on
Form 8824; and

g. How the taxpayer computed the basis of properties acquired in an IRC § 1031 exchange.

12. A non-exclusive list of recommended items to request from the taxpayer when examining a IRC § 1031 exchange

is as follows:

a. Exchange agreement (between taxpayer and QI) and the agreement between the taxpayer and the EAT, if

one is used

b. Exchange summary (chronological listing of all transactions from start to finish)

c. Written property identification (45-day requirement)

d. Purchase and sales agreements for all properties

e. Settlement sheets for all properties

f. Documentation pertaining to any improvements made to exchanged property prior to its receipt

73233-102 13303-11 Tax Cuts and Jobs Act