1031 exchange on real estate

[JenMO]

35 acres cost of $100,000 being sold for $190,000 exchanging for 102 acres purchase price being $175,000. Does he pay taxes on the $15,000 extra money that was not reinvested? Im trying to do an 8824, but cant seem to get the numbers to come out.

[Gene V]

35 acres cost of $100,000 being sold for $190,000 exchanging for 102 acres purchase price being $175,000. Does he pay taxes on the $15,000 extra money that was not reinvested? Im trying to do an 8824, but cant seem to get the numbers to come out.

This is how Part III should look, this is using your figures. don't forget to add the intermediary and selling expenses. (this will change the numbers)

Line 15: $15,000
Line 16: $175.000
Line 17: $190,000
Line 18: $100,000
Line 19: $90,000
Line 20: $15,000
Line 22: $15,000
Line 23: $15,000
Line 24: $75,000
Line 25: $100,000

[taxea]

He has 180 days after close to use the 15K to do improvements or, yes, it is cap gain. This is 180 days in addition to the max of 180 days to close purchase.

[Burke]

The improvements must be accomplished before he takes final ownership of the replacement property.

[taxea]

The improvements must be accomplished before he takes final ownership of the replacement property.

Taking final ownership means closing. According to the webinar I took a couple of weeks ago the new owner has 180days after closing to make the improvements... an additional 180 days from closing. Unless you mean something else by final ownership.

[Gene V]

Taxea,
I've done couple 1031 exchange a few years ago, all improvement then had to be done within the 180 days, their wasn't any additional 180 days for improvement.
could you point me to the new code that say you get additional 180 days.
Thanks

[Burke]

See Revenue Proc 2000-37 and this link for a discussion of Improvement Exchanges, involving an "EAT" which is separate from a QI. https://www.exeter1031.com/article_i...exchanges.aspx. Pay particular attention to the paragraphs titled Parking Arrangements and 1031 Deadlines. All improvements must be made by the time the taxpayer doing the exchange (final owner) takes legal possession of the property.

[taxea]

See Revenue Proc 2000-37 and this link for a discussion of Improvement Exchanges, involving an "EAT" which is separate from a QI. https://www.exeter1031.com/article_i...exchanges.aspx. Pay particular attention to the paragraphs titled Parking Arrangements and 1031 Deadlines. All improvements must be made by the time the taxpayer doing the exchange (final owner) takes legal possession of the property.

All I can tell you at the moment is the Webinar was through CPELINK given by Art Werner on 08/09/17. I specifically asked him to verify that he was saying there is a additional 180 days after closing and he said yes. art.werner@werner-rocca.com