Re: Is This “Cash Boot”? - Posted by Earl
Posted by Earl on August 02, 2003 at 07:02:28:
I am not an attorney but have done several 1031s’ before. It wasn’t clear from your post whether you have already bought the new properties or not. I had a similar situation selling a California condo although it was much smaller amount of $ coming back to me - about 7K.
But I had an alert QI and title officer working for me. When they realized funds might come back to me, they worked together to reimburse it to me in the form of some of my normal closing expenses so there would be no question that it was not cash boot. I also showed my tax preparer the settlements statements who agreed it was legit.
If it isn’t too late, and if you trust your QI, can you work this with them? They may be able to work it so there’s no question.
Also I had my accountant and QI put in a short memo their written justification for not calling it cash boot - and they both readily agreed - just made me feel better, so I could show anybody in the future that I was acting in good faith on the advice I received.