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SE SD | I sold some ground and recently closed. Bought land at auction a few days later expecting to do a 1031 exchange. The auction land literally fell into my lap. I am now told it is "too late" to do a 1031 exchange because when I closed on the sold piece of land the closing documents were supposed to state that a "Qualified Intermediary" was listed as the Seller and the check made out to the Qualified Intermediary. I would enter into a contract with this "Qualified Intermediary" to hold my money until I found new land to buy.
1. It is extremely frustrating to hear it is "too late".
2. I have read IRS form 8824 and the instructions for it and the IRS code 1031. The instructions for 8824 state "IF a qualified intermediary is used...". 1031 code makes no mention of it. I don't know why I can't just file form 8824 at tax time. This transaction falls within the IRS time limits of identifying the replacement land in 45 days and closing within 180 days. I am following the intent, or spirit, of the 1031 code.
3. It seems like from internet searching, that the only entities saying you need to use a Qualified Intermediary are the ones offering that service. Sounds like an opportunity for them to stick their fingers into the transaction.
4. Anybody have experience with this? | |
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Too late for 1031 exchange?
