Help Your Clients Keep More
Tax-season insights, planning tools, and resources to identify 1031 exchange opportunities for your clients — before they sell.
Tax Season Insight
Just finished a client's return showing taxable gain on a property sale? That gain could have been deferred with a 1031 exchange. If that client — or any of your clients — holds other investment real estate, now is the time to have the conversation. The information is fresh, and so is the tax pain.
Why CPAs Are Key to 1031 Exchanges
You see the tax returns. You know which clients sold property at a gain. You're in the best position to prevent it from happening again.
When to Recommend a 1031 Exchange
These are the situations where your proactive recommendation can save your client significant tax.
Recommend a 1031 When...
- Client's return shows taxable gain on investment property sale — they may have other properties to sell
- Client mentions plans to sell rental, commercial, or investment property
- Partnership/LLC holds appreciated real property that may eventually be distributed or sold
- Client wants to "trade up" to a larger or different type of investment property
- Client is retiring from active management but wants to stay in real estate (DST opportunity)
- Client is consolidating multiple properties into fewer holdings
- Client inherited property with low basis and wants to reposition
A 1031 Won't Work If...
- Property is the client's primary residence (§121 may apply instead)
- Property is held as inventory/dealer property (flippers)
- Client needs the cash for non-real estate purposes
- Sale already closed without a Qualified Intermediary in place
Special Note: Partnership-Held Real Property
When a tax partnership sells real property, the partnership itself can do a 1031 exchange — the partnership is the taxpayer, and §1031 applies at the entity level. However, if the partnership sellswithout exchanging, the gain flows through to the individual partners, and the individual partners cannot independently elect 1031 treatment on their share of that gain. The exchange decision belongs to the entity.
This creates a planning opportunity. If some partners want to exchange and others want cash, the partnership as structured may not accommodate both. With advance planning, it may be possible to restructure the ownership — through distributions of tenancy-in-common interests, for example — so that individual partners who want to defer can do their own exchanges while others can take their proceeds. This planning must happen well before any sale, often months or years in advance.
If your client's partnership or LLC holds appreciated real estate, now is the time to explore restructuring options. Jeff Helsdon and your team can evaluate the situation together.
CPA Partner Resources
Register as a partner to unlock these exclusive tools and resources.
Tax Reporting Guide
How 1031 exchanges flow through the tax return — Form 8824, basis tracking, depreciation recapture, and boot calculations.
Register to accessWhen to Refer Checklist
A printable decision flowchart: your client mentions selling investment property — here's when to call Olympic Exchange.
Register to accessClient Email Templates
Tax-season follow-ups, missed exchange opportunities, proactive outreach, and year-end planning emails.
Register to accessCapital Gains Calculator
Show clients the exact tax savings from a 1031 exchange vs. a taxable sale. Great for planning conversations.
Register to accessExchange Handbook
Comprehensive 1031 exchange reference — timelines, rules, identification requirements, and more.
Register to accessDirect Line to Jeff
Urgent questions or closing coordination? As a registered CPA partner, you get direct access to Jeff.
To set up a new exchange, call Cheri at 253.512.1031
Register to accessBecome a CPA Partner
Register in 30 seconds to unlock exclusive resources and partner benefits for your clients.
Ready to Refer a Client?
Starting an exchange is easy. Fill out our intake form or call Jeff to discuss your client's situation.