Discussion:1031 exchange questions
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Discussion Forum Index --> Consumer Questions --> 1031 exchange questions
| 27 January 2006 | |
| I have a client that insists he heard there is a time limitation on disposing of property using another 1031 exchange tha was acquired in a 1031 exchange. the only restriction i can find on the number of 1031 exchanges allowed in a time frame involved related parties and this is not an issue here. | |
| 27 January 2006 | |
| Any property received in an exchange must not be held primarily for sale. Sec. 1031(a)(2)(A). Thus, an individual who acquires an apartment building in an exchange and immediately lists the property for sale, does not have a valid exchange. | |
| 20 February 2007 | |
| I'm a Realtor. I have a client who has a 6 month deadline to make the exchange. He's already transferred the property to an LLC to get this 6 month extension. He sold his property, but the closing date is 18 days past the 6 month deadline. How can this issue be resolved? Are their legal justifications that would grant someone some relief on an 18 day tardiness? | |
Corptaxhelp (talk|edits) said: | February 20, 2007 |
| 1031 exchanges are not for the faint of heart.
Klionerg, I'm afraid your client is out of luck. Identification must occur in 45 days and you must close within 180 days. I don't know how transferring a property into an LLC would allow for a six month extension. How does that work? | |
| 20 February 2007 | |
| Corptaxhelp, you can discount everything said after "I'm a realtor". That statement translates into "I don't have a clue what I'm talking about when it comes to taxes, but I'm trying to make a buck so I'll tell you whatever it takes to close the sale. Your CPA can give you the bad news after I've collected the commission". I have to have a few conversations each tax season that begin with "Don't take tax advice from someone trying to sell you something, call me if it sounds too good to be true." | |
| 20 February 2007 | |
| Some realtors do know something. That is, they know their limitations. I give all of my realtor clients a stack of business cards, and tell them "If you have a client who has a tax question, I will answer it for free as a service to you. Don't try to answer something you aren't sure about." Guess who I get referrals from all year long? | |
| 20 February 2007 | |
| Send some of those realtors that know something my way. 99.9999% I run into don't know their limitations, the remaining 0.00001% shouldn't even be allowed to sell real estate. | |
Corptaxhelp (talk|edits) said: | February 20, 2007 |
| At least you're not bitter, Bjeter. {grin} | |
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