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Tax free exchange , client deposits proceeds into personal account and there is no intermediary. Is exchange now taxable?

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Level 1

Client did use an intermediary for a tax free exchange, met rules of time and property but deposited proceeds of sale into personal account. I believe this makes it a taxable transaction. Just looking for confirmation, or something I missed that will let It remain a tax free exchange.

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Level 11

Yes, it's a taxable sale. There is no 1031.

** I'm still a champion... of the world! Even without The Lounge.

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Level 11

Yes, it's a taxable sale. There is no 1031.

** I'm still a champion... of the world! Even without The Lounge.

View solution in original post

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Level 15

I believe this is NOT a qualified delayed exchange. 1031 grew out of two farmers meeting and swapping pigs (cows, whatever). With real estate doing a same day exchange was difficult, so the Starker exchange came about. The key to Starker winning his case was the intermediary. 


ex-AllStar
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Level 15

I often get curious and here I go again doing so.  If they went through an intermediary, how in the world did the cash end up in the client's bank account?  I hope the intermediary didn't make a lot of money on this deal.

ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.
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Level 15
"there is no intermediary"

ex-AllStar
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Level 1
I meant to say did " not " use an intermediary, Sorry, I would have been curious too..
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