Taxpayers (brother and sister) sell a rental property in Michigan on a land contract in 2002. Now in 2005 the Buyers of the property are refinancing and paying off the taxpayers. The taxpayers were told by a 1031 company rep they could still do a 1031 exchange with this property. It was my understanding since they both received money from the land contract they are not able to. Any advise or code sections would be appreciated.
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