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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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.
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.
and ex marks the spot where those rocks and anvils hit me.