Yes, you can structure this as a Reverse 1031 Exchange pursuant to IRS Revenue Procedure 2000-37. You are able to acquire your replacement property first and then you have 180 calendar days in order to sell your relinquished property.
Reverse 1031 Exchange transactions are more complicated, involved and costly. I can walk you through the mechanical steps involved and explain the pro’s and con’s.
We have admininster 100’s of them. Email me with your contact information and I will be happy to discuss the specific details with you.
Pre-Mature 1031 Exchange??? - Posted by Tom Martin
Posted by Tom Martin on August 11, 2003 at 15:44:17:
Was wondering if the following is possible legally and okay with the IRS?
I have a second home/investment property in Florida that I bought for $400,000 a few years back. It is now worth $900,000. I have a long-term gain of $500,000. I have found a new property in Florida for $1,200,000. I want to take my gain from my current property and roll it into the new property without paying taxes on the gain (legally). I would do a 1031 exchange except I need to close on the new property too soon to sell me current property.
Is there any way that I can buy the new property now, sell my existing property within the next year and still roll the gain from the existing property into the new property tax deferred?
I am willing to work with trusts, creative financing, etc. if this can be done.
What if you buy the property “lease to own” and pay off the balance as soon as you sell your florida property. Would’nt that work? IM not a lawyer or advisor. Just my thoughts. Good luck.