1031 Question
Hello all,
I have been utilizing a HELOC for the past year or so and I'm closing on a property tomorrow which I sold ( I purchased with all cash within HELOC). Captial gains are will be around 27k.
1. Do I just place the proceeds (27k)from this sale in a 1031 and replace any additional money back into the HELOC?
2. Closing is tomorrow on the property and I just started thinking of a 1031. IS it to late to 1031? Can I just have the title company hold the check until I can figure out what to do? The way I understand it is I'm safe as long as my hands don't touch the funds.
Thanks in advance with any insight.
Since you closed yesterday, I am sure it is too late by now.
You did not give us enough information about your property to determine if it is eligible to participate in a 1031 exchange. From the scant information in your post, I am guessing that it is not.
However, if it is: You need a qualified intermediary to hold the proceeds of your sale, you need a written exchange agreement in place, and you need your buyer's and settlement agent's cooperation.
The best time to put the structure of a 1031 into place is before you have a contract on the qualified property you wish to relinquish.
It might not be too late at the last minute to do all these things, but hastily done work is usually sloppy and mistakes can cost you money.
[ Edited by DaveT on Date 01/30/2004 ]