2nd Reverse 1031 Post

[Burke]

Still getting the same message -- "no thread specified" when I click to open post. Try sending without imbedded link? Or maybe if you just posted as a reply to this? Not being able to delete a new post is something I have dealt with and it is IRRITATING. Especially when you have had no replies posted.

[Roland Slugg]

Try sending without imbedded link? Or maybe if you just posted as a reply to this?

There is no embedded link. If you want to read the case opinion, just copy the reference and paste it into Google or other browser.

After all the trouble you've gone to, I hope you find the case ... and my OP ... worth it. Here it is:

This post will not be relevant or of any interest for most visitors here, but for those few who have an interest in §1031 exchanges, perhaps it will.

One of my contacts just brought to my attention a recent (2016) tax court case concerning a reverse §1031 exchange. A reverse exchange is a non-simultaneous exchange in which the replacement property is acquired before the relinquished property is sold, then it's "parked" with a QI until the relinquished property is sold. The case is: Estate of George H. Bartell, Jr. v. Commissioner, 147 T.C. No. 5. The opinion is long ... 63 pages ... but it contains several interesting facets.

The most interesting part for me was the discussion at the bottom of page 43 and the very top of page 44. It got me to thinking about why people have to jump through all the §1031 hoops, especially the mandated use of a costly QI, when the same requirements are not imposed on certain other types of non-simultaneous exchanges, namely involuntary conversions covered by Code §1033. That, in turn, got me to wonder why taxpayers can't simply sell one business or investment asset and purchase a replacement "like-kind" asset, within mandated time limits, of course, and have all or part of the gain deferred. I mean, really ... what's the difference?

Maybe I will suggest that to Congress. Let's see ... who is my congressman?

[Burke]

Got this just fine.