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Leo B.
  • Investor
  • Hercules, CA
47
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Are these allowable 1031 Closing Costs

Leo B.
  • Investor
  • Hercules, CA
Posted

I'm in the middle of purchasing replacement property as part of a 1031 exchange and am trying to get some clarification on allowable closing costs that can be paid by the 1031 proceeds. My 1031 company sent me a list of allowable expenses but it doesn't list some of the line items that are showing up on my estimated HUD statement. Are the items below allowable 1031 expenses?

  • Title commitment fee
  • Title examination fee
  • Deed preparation 

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Clayton Mobley
  • Birmingham, AL
947
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875
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Clayton Mobley
  • Birmingham, AL
Replied

@Leo B. 

http://www.exeter1031.com/permissible_1031_exchang...

Here's a breakdown of what is and isn't permissible, but your specific line items aren't mentioned, so I wouldn't be absolutely sure where they fall. My understanding is that costs associated with title research and deed filing are permissible, but this is really a question for the experts! @Bill Exeter @Dave Foster, thoughts?

  • Clayton Mobley
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