Special case 1031 exchange

[Gbadegesin Obisesan]

Hello all,

I sold a rental property recently and received money in my bank account.

Less than 90 days after, i deployed the money received as deposits into two off-plan properties (for rental when completed). One of the properties will be ready in 2023, while the other will be in 2024.

1. Would this type of distribution (off-plan properties) qualify for a 1031 exchange?

2. Does receiving the money in my account and retaining for a few months nullify the 1031 exchange requirement

All 3 properties are owned outside of the United States

Thanks for any input on the subject.

[Dave Foster]

@Gbadegesin Obisesan, Unfortunately the money cannot touch your hands for one second.  And the qualified intermediary for the 1031 must have prepared documents that become part of the closing of your sale.  

You do not have the opportunity of performing a 1031 exchange on this sale.  Sorry:(