1031 Exchange Question

[Pierre Royce]

Hey guys,

I have a client here in Southern Florida who has just closed on their house 5 days ago. They received around 70k in profit, do they have to pay taxes on this amount or would this be a good situation to do a 1031 exchange to buy another property?

Any advice would be greatly appreciated!

Thanks!

[Dave Foster]

@Pierre Royce, It would have been a very good opportunity for them to defer that 10 - 15K of tax into a new property via a 1031.

Unfortunately, the qualified intermediary who administers the exchange must be in place prior to the closing of the sale.  They closed and have actually received the funds so they cannot do a 1031 at this time.