Do purchase your replacement property in the U.S. or U.S. Virgin Islands.
Foreign investment property does not qualify.
Do acquire property with equal or greater debt.
Unless the debt reduction is replaced with cash, you pay tax on the debt reduction and you have no funds from the exchange with which to pay the tax.
Do reinvest all exchange proceeds
You pay tax on proceeds not reinvested.
Do plan ahead so you can settle on your replacement property within the 45 day identification period.
Real property has unforeseen pitfalls and after forty-five days you cannot add an identification.
45 day identification period
45 day Identification period (the 45 day rule)
:: The exchanger must identify all potential replacement property within the first 45 days of the 180 day exchange period.
Do identify three, or the maximum number of properties.
The ink is free and with real property certainties can become disasters with a surprise survey or environmental report.
Do contract with a Qualified Intermediary that is both bonded and full time.
A professional Qualified Intermediary
Qualified Intermediary (Accommodator, Facilitator)
:: Qualified Intermediary prepares the necessary documentation, holds and protects the exchange proceeds and oversees each closing.
will remind you of your deadlines and if an employee absconds with your $$$'s the bond company will replace them so you can complete your exchange.
Do read IRS form 8824 before you exchange.
Reading it clarifies what you have learned.