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