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

[denmatdebit]

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.

[Accountant-Man · Accepted solution]

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

[George4Tacks]

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. 

[IRonMaN]

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.

[George4Tacks]

"there is no intermediary"

[denmatdebit]

I meant to say did " not " use an intermediary, Sorry, I would have been curious too..