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Updated over 3 years ago, 07/02/2021
Can 1031 be used to paid down loan on your identified property?
I am under contract to purchase a property (closing set 8/4/21). Through a stroke of luck, I have a cash offer on one of my rentals (it's vacant due to a tenant turnover).
I'd love to be able 1031 my sale and use the proceeds to pay for a portion of the property I have under contract. My concern is if the sale does not close before I have to close on the purchase. If that happens, can the proceeds from the sale be used to pay down the loan on the purchase (my identified property) if using a 1031 exchange?