Tax Advisor and CPA Coordination

An Orlando exchange file usually has a local CPA, sometimes an out-of-state tax attorney handling a larger portfolio, a qualified intermediary, a broker, and a lender all touching different pieces of the same transaction. None of them automatically know what the others have already reviewed, so someone has to keep the advisor questions moving on the same calendar as the identification and closing deadlines.

The CPA or tax advisor is the party who should confirm basis calculations, boot exposure, and how the exchange will ultimately be reported, while the qualified intermediary handles the mechanics of holding funds and preparing exchange documents; the two roles are often confused but are not interchangeable. A broker and lender round out the file with market and financing expertise that neither the CPA nor the QI is positioned to provide.

Mapping out which party owns which question at the start of the exchange, rather than assuming everyone already knows their lane, avoids the same question being asked twice or not asked at all.

The same short list of questions gets routed to the CPA or tax advisor early in the process, before they turn into a deadline problem.

• Basis and depreciation history on the relinquished property
• Estimated boot exposure on candidate replacement properties
• Debt replacement requirements against the relinquished loan
• Entity or title-holding questions for the replacement purchase
• Reporting expectations for Form 8824 at year end

Basis and boot questions get sent to the CPA as soon as candidate properties are shortlisted, well before the 45-day identification deadline, since a boot calculation can change how a property ranks against alternatives. Waiting until after identification to raise these questions removes the chance to adjust the list if a candidate turns out to carry more exposure than expected.

Financing and entity structure questions follow a similar pattern, reviewed early enough in the 180-day period that a CPA's answer can still influence how the purchase contract or loan is structured.

Once the exchange closes, the closing statements, exchange agreement, and identification documentation all need to reach the CPA in an organized file rather than as a scattered set of email attachments, since Form 8824 reporting depends on having the full transaction record in one place. Assembling that file as the exchange progresses, instead of after closing, avoids a scramble at tax time to reconstruct documents from several different parties.

Confirming with the CPA that nothing is missing before the file is closed out is a final check worth doing rather than assuming.

An investor with a larger portfolio may use tax counsel based outside Florida who is not familiar with how local closings, title practice, or insurance escrow requirements typically work, which can create friction if closing documents are drafted without accounting for those local details. Sharing a summary of local closing practice with an out-of-state advisor early in the file avoids a late round of questions right before the closing date.

That same summary helps a local CPA and out-of-state counsel stay aligned on which figures each is relying on, rather than each working from a slightly different version of the transaction facts.

What is the difference between what a CPA does and what a qualified intermediary does?

A CPA or tax advisor evaluates basis, boot, and how the exchange will be reported for tax purposes, while the qualified intermediary handles the mechanics of holding exchange funds and preparing the exchange agreement without giving tax advice. Confusing the two roles is a common way exchange questions go unanswered, since neither party assumes the other's job by default.

When should a CPA be brought into the file to avoid a constructive receipt problem?

A CPA should review the exchange structure and funds flow before the relinquished property closes, since constructive receipt issues typically arise from how proceeds are handled at closing rather than from later steps in the process. Looping the CPA in only after a closing has already happened removes the chance to catch a structural problem before it occurs.

When does the CPA typically prepare Form 8824?

Form 8824 is generally prepared with the tax return for the year in which the exchange transaction closed, using the closing statements, exchange agreement, and identification records assembled during the exchange. Handing the CPA a complete, organized file at closing rather than a scattered set of documents makes that preparation more accurate and faster.

Should boot exposure be discussed with the CPA before or after identification?

Boot exposure should be discussed before the identification deadline, while there is still time to adjust the candidate list if a property carries more exposure than expected. Raising the question after identification limits the investor's ability to respond if the CPA flags a problem.

How do multiple advisors stay coordinated without duplicating each other's work?

Mapping out which advisor owns which question at the start of the exchange, and routing documents to the right party the first time, is what keeps a CPA, QI, broker, and lender from asking the same question independently or leaving a gap between them. A single shared calendar of deadlines and open questions, rather than separate email threads with each advisor, is usually what makes that coordination hold together.