1031 Planning
I'm getting ready to sell another rental and will in all likelihood take advantage of the 1031 option. To cover the initial bases I intend to state clearly in the listing agreement with the agent that the sale is for exchange purposes. I also will insist the agent state "1031 exchange" in the MLS listing. I will also make sure it is addressed in any sales contract. I wonder if this may be a bit of overkill....even so, with the IRS, too much paperwork never seems to be a problem for them. Does anyone know what the bare minimum requirement is for IRS purposes?
I just use an addendum to the sales contract that states the sale is part of a 1031 exchange and that the buyer will cooperate with the exchangor.
No need to advertise that the property is an exchange property in the MLS, though you do need to make it clear to the listing agent that the property is the relinquished property in an exchange and that your 1031 exchange addendum must be part of any accepted sales contract.
It is a bit of an overkill, but it does not hurt anything.
[addsig]