Tax Advisor and CPA Coordination

We do not give tax advice on a New York City 1031 exchange. This service routes the transaction facts, sale price, debt, replacement candidates, and timeline, to the taxpayer's own CPA and tax counsel early enough that boot exposure, basis questions, and filing requirements are addressed before closing rather than discovered afterward.

What Gets Sent to the Advisor Team Early

As soon as a relinquished New York City sale is under contract, we assemble a summary the taxpayer's CPA can review without having to reconstruct the deal from scattered emails: sale price, estimated closing costs, existing debt balance, projected net equity, and the emerging list of replacement candidates.

This gives the advisor time to flag boot exposure, whether from cash taken out of the exchange or from replacing less debt than what was paid off, while there is still time to adjust the replacement target before identification. We update this summary as candidates change rather than sending it once and letting it go stale.

The summary also carries the combined New York City and New York State transfer-tax stack on both sides of the transaction, since that cost affects net proceeds on the START EXCHANGE REVIEW and the closing budget on the replacement purchase alike, and it is one of the figures a CPA most often asks for when first reviewing a New York City exchange.

Recurring Questions We Route to the CPA

Certain questions come up on nearly every New York City exchange and go directly to the taxpayer's advisor rather than being answered by our team.

Whether a specific candidate's price and assumed debt avoid boot
How basis carries over into the replacement property
Form 8824 preparation and supporting documentation needs
New York City unincorporated business tax exposure for pass-through entities
State and city filing obligations tied to the sale and the replacement purchase

We keep a written log of every question routed to the advisor and the answer received, so the exchange file has a clear record of what was asked and resolved rather than relying on memory later.

Coordinating Multiple Advisors on One File

Larger New York City exchanges often involve a CPA, a separate tax attorney, the qualified intermediary, and sometimes a lender's counsel, all needing the same underlying facts at different points in the timeline. We keep one current summary rather than letting each party work from a different version of the deal terms.

Where a taxpayer holds the relinquished property through an entity with partners, we flag that structure early, since dropping a partner out of an entity before an exchange raises separate issues the tax advisor needs time to address well before the 45-day window opens. We do not weigh in on how that issue should be resolved, only that it needs the advisor's attention before decisions get locked in.

The entity and candidate picture often spans several boroughs at once, a Manhattan office condo held by one entity, a Brooklyn multifamily interest held by another, an outer-borough industrial parcel considered as a replacement, and we keep the advisor summary organized by entity and by borough so the CPA can see which structure applies to which piece of the exchange rather than working from one undifferentiated list.

Keeping the Advisor Loop Current Through Closing

As replacement candidates are added to or removed from consideration, we update the advisor summary rather than waiting until the written identification notice is final. This gives the CPA a chance to flag a boot or basis issue on a candidate before it becomes one of only three properties named in the notice.

Once the exchange closes, we confirm the taxpayer's advisor has everything needed for Form 8824 and any related state filings, since that documentation is easier to assemble while the transaction details are still fresh than months later at tax filing time.

Common 1031 Exchange Questions

Does this service replace the need for a CPA on a New York City 1031 exchange?

No. We coordinate facts and timing between the taxpayer and their own CPA and tax counsel. We do not give tax advice, and every boot, basis, or filing question is routed to the taxpayer's advisor for a final answer rather than answered directly by our team.

What is boot in a 1031 exchange, in practical terms?

Boot generally refers to cash or non-like-kind value received in the exchange, or debt relief not fully replaced by new debt on the replacement property. Any boot is typically taxable even though the rest of the gain is deferred, so we flag it early for the taxpayer's CPA to quantify.

How does entity structure affect a New York City exchange involving multiple partners?

If the relinquished property is held by a partnership or LLC with multiple members, changes to that ownership structure around the time of the exchange can raise separate tax issues. We flag this early so the taxpayer's counsel has time to address it before the identification window opens.

When should the CPA first see the deal terms on a New York City sale?

As early as possible, ideally once the relinquished property is under contract. This gives the advisor time to review boot exposure and debt replacement targets before the 45-day identification window narrows the available options for the taxpayer.

Does New York City's unincorporated business tax affect exchange proceeds?

It can apply to certain pass-through entities holding real estate, depending on the structure. We flag this as a question for the taxpayer's CPA rather than providing a determination ourselves, since the answer depends on facts specific to the taxpayer's entity.