Tax Guru-Ker$tetter Letter
Saturday, January 21, 2006
Set Up Exchange Beforehand
Q:
Subject: Exchange QuestionIf an exchange was declined at closing of escrow and the property has been sold, can the seller still decide to purchase a home, invest the money into a new property and still get tax even though an exchange was not established?
A:
The answer is no.
The exchange has to be set up before the sale leg closes. It is also critical that you never touch the money.
Kerry Kerstetter