I just ran across something touted as a "1031 rescue plan", that causes a
failed 1031 exchange to become an installment sale for the seller, deferring
taxes out into the future. Some of the numbers used in their example are a
bit odd, but the concept seems ok.
Anyone heard of this? I can post a link, but don't know the etiquette for
doing so on this group. I am not trying to spam, here, just pass on some
info and seek some comment.
========================================= MODERATOR'S COMMENT:
- links that are on-topic and either add to an open thread or
introduce a relevant tax related topic, are usually approved.
no, it sounds like once you sell your property, and the replacement fails,
they qualified intermediary makes your sale an installment sale. The
paperwork has to be done ahead of your sale to allow this possibility.
from the proceeds of the sale of the property, which is then invested to
provide the stream of income for the installment sale. Or so it would seem.
What about disqualification concerns you? I don't know this reg.
AHmmm.. interesting. But you reckon that in case of a "failed
exchange", there is no further need of an intermediary, therefore his
office is vacated and just another potential investor?
But for it to work, there canna be anything in the contract about the
unspoken arrangement. A bit risky, I think.