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1031 exchange

jpettigrew
Level 2

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? 

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Just-Lisa-Now-
Level 15
Level 15

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.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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2 Replies 2
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."
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Just-Lisa-Now-
Level 15
Level 15

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.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

View solution in original post