Part of a successful transaction involves ensuring that every bit of paperwork associated with it meets the approval of the IRS. You must make sure that all documentation the IRS wants to see in a transaction has been handled correctly. That includes the wording of your sales and purchase agreements.

The listing agreement you sign with a real-estate agency should include a statement that discloses your intent to use the proceeds from the sale of the property to perform a like-kind exchange. An offer to purchase must also contain wording that notifies the seller of the replacement property that you intend to do an exchange. Before you sign any contract, ask your attorney or intermediary to suggest disclosure wording that is acceptable to the IRS.

Give your intermediary copies of all documents associated with your exchange. Your attorney or CPA can tell you which tax forms you must file with the IRS.