Is it to late to set up a 1031 exchange?

Question

Hi folks,A plot of farmland that my wife inherited is going to auction today and we would like to defer any capital gains with a 1031 exchange. Have I totally screwed up by not positioning ourselves for this prior to the auction. Can I still set up a 1031 after the sale and prior to closing, or have I missed my window??? Any help would be greatly Appreciated!

Lisa Mauritis · Answer

@Chad Walker good luck!

Chad Walker · Answer

Hi @Lisa MauritisWell, it isn't as buttoned up as I thought. According to our lawyer we are okay, but we haven't had the chance to meet with our accountant yet, so I'm still a bit stressed.

Lisa Mauritis · Answer

@Chad Walker hi Chad. How did you sort out the situation 1031 exchange situation?

Johnny Borrelli · Answer

@Chad Walker no problem!

Chad Walker · Answer

@Johnny Borrelli It's kind of a convoluted situation. He passed away back in 2000 but my wife didn't take ownership of the property until 2015-ish. Regardless of all that, after a quick panic we got the issue of the 1031 ironed out. Thanks for chiming in though. Nice to know there are folks in these forums eager to offer assistance!

Johnny Borrelli · Answer

Hi @Chad Walker. When was it inherited and has there been any gain in value since it was inherited?

Dave Foster · Answer

@Chad Walker if you don't have an intermediary in place when that sale executes then yep you're toast. It may not be too late. A good QI would need to get more specifics on the auction and how deed was transferring. But it might be possible. Check your PM box.

Is it to late to set up a 1031 exchange?

7 Replies