1031 form

[Jeff S.]

Have a friend that has a property that he wants to accept money from a 1031 property that has sold and the funds are being held by a facilitator.

Would you consider the completion of identifying the property as a sale or an exchange. In other words, would you use an exchange agreement or just a straight sale agreement?

[Dave Toelkes]

Originally posted by Steve Babiak:

As Steven posted above, your friend should be contacting the QI for instructions on how to proceed so as to not jeopardize the tax-exempt status of the sale of the relinquished property.

Just to clarify,

1031 exchange only defers capital gain taxes, does not exempt them.