Starting an Exchange
I closed yesterday but haven’t touched the funds. I can still set up an exchange.FALSE
Unfortunately, you cannot defer your taxes via a 1031 Exchange if you have already closed on your property. To comply with the requirements of the 1031 regulations, you must enter into an Exchange Agreement with a Qualified Intermediary (IPX1031) and the Qualified Intermediary must assign into the contract between you and your buyer before the “benefits of benefits and burdens of ownership” transfer to the buyer.
The process to begin opening an exchange can be quickly accomplished however it is important that the taxpayer contacts the facilitator prior to the transfer of the Relinquished Property to set up the exchange. A 1031 Exchange cannot be opened after the property has been transferred.
