Tax Advisor and CPA Coordination

Nothing in a replacement property search or a closing schedule substitutes for the investor's own CPA reviewing the tax consequences of the exchange, and the coordination role here is to keep that advisor supplied with accurate transaction facts on a schedule that matches the exchange deadlines rather than lagging behind them. That schedule discipline is what keeps a tax question from surfacing after it can still be addressed, when the options for fixing it have already narrowed.

The advisor is typically looped in twice: once early, while the relinquished property is under contract and the exchange structure is being set up, and again as replacement candidates firm up, so basis and boot questions can be reviewed before the identification notice is filed rather than after closing when options have narrowed.

A CPA already familiar with the investor's broader tax situation, entity structure, or prior exchange history is looped in even earlier where possible, since that context shapes how a new exchange should be structured and helps the advisor answer questions faster once the transaction is moving.

Rather than a phone call summary, the advisor receives a written package with the transaction facts needed to answer basis and boot questions accurately. That package includes:

• relinquished property sale price and closing statement
• original purchase price and depreciation schedule if available
• replacement property purchase price and financing terms
• qualified intermediary fee and fund-handling summary

Where the investor holds the property through an LLC, partnership, or trust, ownership documents are included in that same package so the advisor can confirm entity-level eligibility questions without a separate request, which saves a full round of back-and-forth.

Does this coordination role provide tax advice directly?

No, tax advice comes from the investor's own CPA or tax advisor; this role focuses on supplying accurate, timely transaction facts so the advisor can make that determination rather than working from incomplete information. That boundary is kept clear throughout the exchange.

When should the CPA first be looped into the exchange?

Early, while the relinquished property is still under contract and the exchange structure is being set up, so basis and boot questions can be reviewed before the identification notice is filed rather than discovered afterward. That early engagement gives the advisor room to raise concerns while they can still be addressed.

What is boot and who determines whether it applies?

Boot generally refers to a value or debt shortfall between the relinquished and replacement property that can create taxable gain; whether it applies and how much is a determination made by the investor's CPA based on the specific transaction facts, using figures supplied as part of the coordination package.

When is Form 8824 information handed off to the CPA?

Transaction records are assembled and handed off well ahead of the filing deadline for the tax year the exchange closed in, since reconstructing closing statements and intermediary records after the fact takes considerably longer.

How often does the advisor need to be updated during the exchange?

Check-ins are scheduled around the forty-five-day identification deadline and the one-hundred-eighty-day closing deadline rather than on a fixed calendar, since those are the points where a tax question could still change the transaction structure. An extra check-in is added if the investor's circumstances change mid-exchange, such as a new entity or a second concurrent transaction.