accepting down payment

[Brenda Kinney]

If you are in escrow, which closes in 5 days, and have accepted a down payment, is it too late to arrange a 1031 exchange in California?

This is an inherited property between siblings with 50% ownership each. Does what one sibling do with the proceeds affect the others options regarding a 1031 exchange? 

There is appx. $50k appreciation in the SFR rental property since inheriting 1 1/2 years ago. Does that mean each sibling would be responsible to pay tax on 1/2 of the $50k?

[Jessica Zolotorofe]

(1) Shouldn't be too late. You don't have to open a 1031 until you are about to close your relinquished property. The money only becomes "non-touchable" once you close your sale, you can't touch the proceeds, but it's ok if the deposit is up in escrow. Unless, do you mean you actually had the deposit released to you?

(2) You can't 1031 interests in LLCs, but if you and your sibling own 50% as tenants in common, you are good to go and one or both can do a 1031.