All Forum Posts by: Todd Luong

1031 Exchange Question - Let's say the investor has already sold her relinquished property (which was owned free and clear with no debt) and afterwards has $325,000 in 1031 exchange funds available. The investor is now buying a replacement property for $300,000 cash. On the final settlement statement, the seller of the replacement property is giving the investor-buyer a $3,000 property tax proration credit. So now, the 1031 Intermediary only needs to wire $297,000 in funds for closing. If the investor-buyer wants to be able to "use up" $3,000 more of her 1031 exchange funds in order to maximize her tax savings, what solutions are there? Can she ask the title company not to do any property tax prorations and ask the seller to give the property tax proration credit to her outside of closing? Is that allowed? Or is there a better solution?