1031 exchange

Forum|Forum|5 years ago
August 10, 2020
2 replies
22 views

If I sell a rental property in March and then purchase a rental property in April, can I use the 1031 Exchange to defer the gain in the sale with using an inter-mediator?

ProSeries Professional

This topic has been closed for replies.

Best answer by Just-Lisa-Now-

If you got the money from the sale (rather than have it held in an escrow account with an intermediary), its too late to do a 1031 exchange.

qbteachmt

Level 15

Who took possession of the funds in the interim? From:

https://www.1031exchange.com/faq/

"IRC 1031

Pertains to the exchange of property used in “trade or business or investment.”
Do not report gain if property is exchanged for “like-kind” property (e.g., real estate for real estate).
A third party intermediary is required.
May not have actual or constructive receipt of sales proceeds from the relinquished property (all funds must be deposited with the exchange-accommodator).
180 days to replace the relinquished exchange property.
45 days to identify replacement property.
Net equity must be reinvested in property of equal or greater value to the relinquished property."

Don't yell at us; we're volunteers