1031 exchange attorney trust account - Spidell

1031 exchange attorney trust account

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Message Board 1031 exchange attorney trust account

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    • #275026
      Anonymous
      Participant

      I have a client going through a divorce who sold a rental property with his ex and pursuant to court order the funds on the sale were put into an attorney trust account for the two parties (my client and his ex) until the divorce was finalized.  The divorce is about to be finalized and my client should have most of the funds released from the attorney trust account.  My client is interested in pursuing a 1031 exchange with his funds.  Couple questions:

      1. Is a 1031 exchange possible and will the 45 day and 180 day periods start the day he has access to funds from the attorney trust account (versus the date the property sold)?
      2. Is there any way the client can keep the funds in the attorney trust account until the market is better and when it is have the funds transferred into an accomodator account and start the 45 and 180 day clock with the date the funds were transferred?

      I think the 1031 exchange would start on the date he has the ability to have the funds (even if he chooses to not take the funds right away).  My client does understand that he can’t touch the funds, they would have to go directly to an accomodator.

    • #275095
      William Dewberry
      Participant

      If i understand your facts, property has been sold, escrow closed, funds held by atty who will disburse to your client and his ex. The window has closed on this transaction, 1031  not available.

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