Can I combine a 1031 exchange with a cash-out refinance on the relinquished property right before closing without triggering an IRS audit, and do I need to talk to my CPA about this today?
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SEED QUERY
Can I combine a 1031 exchange with a cash-out refinance on the relinquished property right before closing without triggering an IRS audit, and do I need to talk to my CPA about this today?
2 real searches · 1 real-search pass
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ChatGPT2 real searches · gpt-6
IRS section 1031 refinance cash out before sale relinquished property debt proceeds step transaction doctrine Google ↗
1031 exchange cash out refinance immediately before sale tax treatment debt proceeds CPA guidance Google ↗
- Resources > Press Room > Refinancing Planning Tips · oldrepublicexchange.com
- Pre-Exchange Refinancing: A Hidden Trap in the 1031 Exchange Process - CPEC1031, LLC · cpec1031.com
- 6.6 **Clients Must Avoid a Step Transaction When Refinancing the Property.** The refinancing of the Replacement Property after the exchange or the Relinquished Property before the exchange should not be tied to the exchange by written or oral understandings or prearranged loans, in order to avoid IRS assertions that the received loan proceeds are taxable “boot” from the §1031 exchange under a step-transaction theory.⁷⁰ · troygould.com
- 26 CFR § 1.1031(k)-1 - Treatment of deferred exchanges. | Electronic Code of Federal Regulations (e-CFR) | US Law · law.cornell.edu
- Exchanges Under Code Section 1031 · americanbar.org
Queries
2 queries · click a column to sort
| Query / type | Search | Intent | Query class | Routing format | Cluster | Freq ↓ | Weight |
|---|---|---|---|---|---|---|---|
IRS section 1031 refinance cash out before sale relinquished property debt proceeds step transaction doctrine OBSERVED | Google ↗ AI Mode ↗ | — | — | — | — | 1x of 1 | |
1031 exchange cash out refinance immediately before sale tax treatment debt proceeds CPA guidance OBSERVED | Google ↗ AI Mode ↗ | — | — | — | — | 1x of 1 |