1031 replacement property - dealing with credits for taxes, rent?

[Elizabeth Goff]

I am closing on a replacement property for a 1031 exchange and am unclear on how to handle credits back to me.  The credits include security deposits, prop tax liability and pro-rated rent.  I don't want them to reduce the purchase price as these expenses are not allowable in a 1031 exchange, and I want to maximize my use of funds.

I am not getting good guidance from my 1031 firm (and can't get in touch with my accountant at the moment) so I'm wondering if anyone has experience in this topic. How does this get specified on the HUD to keep it legal? From my view, my 1031 firm needs to pay the total price of the house + allowable closing expenses, and then credit the monies need to come to me. Would rather this all go through the escrow company vs having a separate payment between me and the seller (unless this can be handled by the escrow company as well).