Discussion:1031 exchange with replacement property financing

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Revision as of 22:46, 29 July 2009
Linzlrs (Talk | contribs)
(I'll give it a t)
← Previous diff		 Revision as of 23:02, 29 July 2009
PVVCPA (Talk | contribs)
(Can you please p)
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{{ForumReplyPost|UserID=Linzlrs|Date=29 July 2009|Text=I'll give it a try. I believe the only online subscription we have is RIA, which has been less than helpful.}} {{ForumReplyPost|UserID=Linzlrs|Date=29 July 2009|Text=I'll give it a try. I believe the only online subscription we have is RIA, which has been less than helpful.}}
 +
 +{{ForumReplyPost|UserID=PVVCPA|Date=July 29, 2009|Text=Can you please provide some more info:
 +
 +Was this a deferred (3-party) exchange?
 +
 +How much money was transferred through the QI?
 +
 +You said there was seller financing. How much of the sales price did your client finance?
 +
 +Was the new loan on the replacement property taken out at closing or did this happen after the fact?
 +
 +How much cash did your client get out of the replacement escrow?
 +
 +I have a hunch your client has a big pile of boot.}}

Revision as of 23:02, 29 July 2009

Discussion Forum Index --> Advanced Tax Questions --> 1031 exchange with replacement property financing
Discussion Forum Index --> Tax Questions --> 1031 exchange with replacement property financing

Linzlrs (talk|edits) said:

29 July 2009
I have a 1031 exchange with the following facts:

FMV relinquished property = 2,192,400

Exchange expenses = 95,156

Cash received at closing = 50,174

Mortgage payoff at closing = 74,159


FMV replacement property = 1,983,463

Exchange expenses = 3,001

New loan to purchase the replacement property = 505,000


Does the financing of the replacement property = boot? I am finding conflicting guidance on this. There was seller-financing on the relinquished property so my client did not receive the excess funds in cash.

Any thoughts?

Kevinh5 (talk|edits) said:

29 July 2009
TaxTools has a great worksheet to help you pencil this out. You have boot.

Linzlrs (talk|edits) said:

29 July 2009
Thanks Kevinh5, do you have a link to that worksheet?

Kevinh5 (talk|edits) said:

29 July 2009
do you use the TaxTools software? you can download a trial/demo version for free at taxtools.com

(if you choose to purchase, drop me an email and I can refer you so you can get a discount)

Linzlrs (talk|edits) said:

29 July 2009
I'll give it a try. I believe the only online subscription we have is RIA, which has been less than helpful.

PVVCPA (talk|edits) said:

July 29, 2009
Can you please provide some more info:

Was this a deferred (3-party) exchange?

How much money was transferred through the QI?

You said there was seller financing. How much of the sales price did your client finance?

Was the new loan on the replacement property taken out at closing or did this happen after the fact?

How much cash did your client get out of the replacement escrow?

I have a hunch your client has a big pile of boot.

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