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If the taxpayer has already signed a contract to sell the relinquished property, is it too late to start a tax-deferred exchange?

April 26, 2017contract exchange late Property relinquished sell signed tax-deferred taxpayer

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If the taxpayer has already signed a contract to sell the relinquished property, is it too late to start a tax-deferred exchange?

3 Answers

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No, as long as the taxpayer has not transferred title, or the benefits and burdens of the relinquished property, she can still set up a tax-deferred Exchange. Once the closing occurs, it is too late to take advantage of a Section 1031 tax-deferred exchange (even if the taxpayer has not cashed the proceeds check).

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No, as long as the taxpayer has not transferred title, or the benefits and burdens of the relinquished property, they can still set up a tax-deferred Exchange. Once the closing occurs, it is too late to take advantage of a Section 1031 tax-deferred exchange (even if the taxpayer has not cashed the proceeds check).

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No, as long as the taxpayer has not transferred title, or the benefits and burdens of the relinquished property, they can still set up a tax-deferred Exchange. In other words, five minutes before the closing there is still time; five minutes after the closing it is too late.