1031 liquidation

[Lee Schram]

Hi BP,

Need help with a 1031 question.

On a 1031 election, can you liquidate the proceeds prior to the ending of the 180 day period requirement without penalty?

If so, are there specific situations that allow you to?                                                               

[Robert Hetsler]

Generally yes you can if you are talking about IRS penalty.  Depending on timing of the entire exchange and process it is possible but failing to meet deadline or changing your mind in the process does not automatically result in penalty in and of itself.