Discussion:1031 Reverse Exchange
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Discussion Forum Index --> Advanced Tax Questions --> 1031 Reverse Exchange
Discussion Forum Index --> Tax Questions --> 1031 Reverse Exchange
| 13 May 2009 | |
| Following 1031 Reverse exchange events all taking place under the facilitator's umbrella. I'm dropping $1,000s. Client acquired property A in late 2008 for $950, $5 down and debt of $945 which includes $350 note that is to be paid from sale of property B. Property B with basis of $200 being sold for $590.. proceeds to pay off $200 debt on B, $40 transaction costs, and $350 of acquisition note on A.
The 180 day time limit will expire before buyer of B can complete the financing that creates $350. Facilitator and realtor want to deed B to new buyer, subject to existing debt, pending a refinance when the $590 less $200 old debt and $40 transacton costs would be paid off "getting out of the hands of the facilitator and into hands of Property B buyer who, under terms of the pending refinance agreement, uses this $350 to pay note to Property A seller. I have sugested to my client that his disposal of B creates a taxable event... either because the excvhange was not completed within the 180 day period ... or he has received $350 of boot. Comments.... suggestions...? | |
