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DO's
• DO use all proceeds from the relinquished property for purchasing the replacement property. You WILL pay taxes on all proceeds not reinvested.
• DO make sure the debt on the replacement property is equal to or greater than the debt on the relinquished property. (exception - A reduction in debt can be offset with additional cash, however, a reduction in equity cannot be offset by increasing debt)
• DO receive only like-kind replacement property (A personal residence, land under development, construction or fix/flops for resale, inventory properties, bonds, and notes do not qualify as "like kind")
• DO read IRS Form 8824 before you exchange (available for download).
• DO use only a respected and bonded qualified intermediary.
• DO identify the maximum of 3 properties during your 45 day identification period. The cost of putting the ink on the paper is free but having the peace of mind that you are covered should a replacement property fall through is priceless.
• DO purchase replacement property only located in the U.S. or U.S. Virgin Islands. Foreign investment property will not qualify under any circumstances.
DONT's
• DO NOT miss your identification exchange deadlines. The exchange will be disqualified if the 1031 replacement property is not identified within 45 days and/or the replacement property is not acquired within 180 days. Time is of the utmost importance as the IRS absolutely will not grant any exceptions whatsoever.
• DO NOT reinvest the proceeds in property you already own.
• DO NOT dissolve partnerships or change the manner of holding title during the exchange without consulting an expert on exchange entities. Do this and the exchange benefits will be lost.
• DO NOT buy a real estate mutual fund or Real Estate Investment Trusts. Only "like kind" property qualifies as a replacement property.
• DO NOT go to settlement unless the Qualified Intermediary's documents are at settlement as well.
• DO NOT try doing a 1031 Exchange yourself! Seek the help of knowledgeable professionals.
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1031 Exchange 
