1031 exchange! Is this possible?

[James Miller]

Is this possible? Sale 7 properties (some with liens/ some without) to the same person at the same time. Place all left over proceeds with the proper 1031 agent ( closing attorney). Use all the left-over proceeds as a down-payment for a much larger complex (will be identified prior to sale). I have an appointment with an attorney coming up, but would like any input you guys/gals may have, Thanks!

[Dave Foster]

@Wayne Brooks, I'm looking for a floating computer stand on Amazon - Bad idea???  

@James MillerThe premise of that as a valid 1031 looks fine.  Some positives - Since the sales are all to one party on one closing you will be able to treat that as one exchange.  So one exchange fee and one calendar for all.  That lowers the cost of the exchange and simplifies the time frames for the reinvestment to only having to monitor one calendar.

The only thing that you'll need to make sure of like @Stanley Bronstein said is that the closing attorney cannot act as Qi.  The QI must be an unrelated party to you and to the transaction.   When the closing entity simply holds your money in their escrow account after closing you are deemed to have constructive receipt (meaning control if not possession) of the money.  And that invalidates your exchange.  

And you'll need the QI to be in place prior to close because there are specific documents and addendums needed to the closing statement to reflect the 1031.

Regarding the gain/depreciation calcs those will be easily summarized by your accountant on the form 8824 that they'll attach to your 2019 tax return.  Easy Peasy

Other than that it looks like a great scenario for you.