My husband and I sold one of our rental properties towards the end of May. We have found another property we now want to purchase. Could we possibly still do a 1031 exchange or is it too late now? We did not know for sure that we were going to be purchasing this other property so quickly after selling the other so hadn’t really thought much about a 1031 exchange being an option at the time we sold it.
Sorry @Natalie Lindsey , If you want to do a 1031 you must use the services of a qualified intermediary. And they must be in place prior to the closing of your sale so the settlement statement reflects the 1031 and you do not touch the proceeds.
The 1031 would have let you defer all tax and depreciation recapture. You have 45 days after the closing of your sale to identify potential replacements and 180 days to close. But there is no penalty for starting and not completing a 1031 other than paying the tax.
@Dave Foster thank you for this information. It sounds like we missed out this time but we will know for future reference. Either way we still plan to move forward with the purchase of this other home. Just wish we would have planned it out a little better to use the 1031 exchange. Oh well, you live and you learn right?! It seems there are a lot of learning lessons when it comes to real estate investing.😊