Updated over 7 years ago on . Most recent reply
1031 exchanges with auctions
Hi BP community,
I am in the process of selling a property and would like to know if 1031 exchange would work for auctions. I can't seem to see why it wouldn't work with auctions, but I would like to know if it would work with auction.com specifically? (I'm aware that the deals take a long time to complete, and sometimes the deals fell through).
Have any of you ever tried 1031 with auctions? Let me know your experience?
Helen Z
On the side note, I would love to receive some referrals for 1031 exchange company that I can use for this 1031 exchange deal.
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- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
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@Jessica Zolotorofe, yep those can be other flies in the ointment. We could not release exchange funds directly to a client without putting their entire exchange in jeopardy. Depending on how the auctioning entity handles it... Many times the deposit is simply verified visually so the client will use their own funds for that and full payment can be made with only exchange funds or the deposit is refunded to the client (although this creates it's own boot interpretation issues). The most usual event is that the client ends up purchasing enough more than they sell so that it takes the combination of the exchange funds plus the deposit from the client.
- Dave Foster
