Can exchange proceeds reimburse my personal funds that I used for an EMD?
Should the Exchangor decide to utilize their personal funds for the EMD, they are eligible to be reimbursed via exchange proceeds at the closing of the replacement property as long as there are sufficient funds. This is executed at the closing of the replacement property and requires coordination between the Closing Agent and the Qualified Intermediary. Exchange Proceeds cannot be specifically allocated so in order for the personal EMD funds to be refunded, there must be adequate funds to do so. It’s recommended to discuss this with your QI prior to providing the EMD.
26 U.S. Code § 1031 - Exchange of real property held for productive use or investment
(a)Nonrecognition of gain or loss from exchanges solely in kind
(1)In general
No gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or for investment if such real property is exchanged solely for real property of like kind which is to be held either for productive use in a trade or business or for investment.
(2)Exception for real property held for sale
This subsection shall not apply to any exchange of real property held primarily for sale.
(3)Requirement that property be identified and that exchange be completed not more than 180 days after transfer of exchanged propertyFor purposes of this subsection, any property received by the taxpayer shall be treated as property which is not like-kind property if— (A) such property is not identified as property to be received in the exchange on or before the day which is 45 days after the date on which the taxpayer transfers the property relinquished in the exchange, or (B)such property is received after the earlier of— (i) the day which is 180 days after the date on which the taxpayer transfers the property relinquished in the exchange, or (ii) the due date (determined with regard to extension) for the transferor’s return of the tax imposed by this chapter for the taxable year in which the transfer of the relinquished property occurs.
打算买一个新建房(4个月之后过户),现在需要交10万左右deposit ,但是1031的房子还没过户.这种情况,能不能先从个人账户交了deposit ,然后等旧房过户之后,新房close 的时候把deposit 拿出来?网上看了一下,貌似可以,心里不确定,还是想问一下大家,有什么风险吗
Can exchange proceeds reimburse my personal funds that I used for an EMD?
Should the Exchangor decide to utilize their personal funds for the EMD, they are eligible to be reimbursed via exchange proceeds at the closing of the replacement property as long as there are sufficient funds. This is executed at the closing of the replacement property and requires coordination between the Closing Agent and the Qualified Intermediary. Exchange Proceeds cannot be specifically allocated so in order for the personal EMD funds to be refunded, there must be adequate funds to do so. It’s recommended to discuss this with your QI prior to providing the EMD.
https://atlas1031.com/blog/earnest-money-deposits-in-a-1031-exchange/
旧房没有close，就可以identify新房子了吗？
我一直以为旧房子close了才可以开始找新房子。
26 U.S. Code § 1031 - Exchange of real property held for productive use or investment
(a)Nonrecognition of gain or loss from exchanges solely in kind
(1)In generalNo gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or for investment if such real property is exchanged solely for real property of like kind which is to be held either for productive use in a trade or business or for investment.
(2)Exception for real property held for saleThis subsection shall not apply to any exchange of real property held primarily for sale.
(3)Requirement that property be identified and that exchange be completed not more than 180 days after transfer of exchanged propertyFor purposes of this subsection, any property received by the taxpayer shall be treated as property which is not like-kind property if— (A) such property is not identified as property to be received in the exchange on or before the day which is 45 days after the date on which the taxpayer transfers the property relinquished in the exchange, or (B)such property is received after the earlier of— (i) the day which is 180 days after the date on which the taxpayer transfers the property relinquished in the exchange, or (ii) the due date (determined with regard to extension) for the transferor’s return of the tax imposed by this chapter for the taxable year in which the transfer of the relinquished property occurs.有个房子一周后房客就搬出来了，一直在犹豫要不要换个新房，不需要等close的话，还是可以考虑的，目前的利息还能接受。