How would you feel if the IRS said your taxes have not been paid until your tax payment has been "actually received"?

And it may be an easier sell if we drive home the point that upper-income taxpayers already get subsidies of that order via the tax system.

It would not require you to sell the property or make any additional tax payments.  

If you can't afford it, that is NOT the taxpayers fault.

You can use escrow balances as an indication of insurance and tax payments.

1) IRS Publication 225 Farmer's Tax Guide, Chapter 4 Farm Business Expenses, "Not-for-Profit Farming", p. 27.2) USDA publication R8-TP 39 "Federal Income Tax on Timber", Section I(3)(1), on p. 3 http://www.fs.fed.us/spf/coop/library/taxpubfaqs.pdf3) Also -"The impetus for enacting § 183 was a concern that taxpayers were often deducting hobby losses, particularly hobby losses in farming."

If in deteriorated condition, it definitely isn't something the taxpayers are going to want until the repairs are made to bring it into compliance.

If they are willing to do either of the other two, that is something you should pursue.The probable explanation for their use of a QCD is they did not seek to quite title from the tax payer who lost the property.

So, the standard answer is no.However, the IRS did issue two Private Letter Rulings in 2002 and 2003 that essentially did allow the taxpayer to 1031 Exchange into property they already owned.

And you are taking title as the same tax payer that sold the old property.