Title Before CO in a 1031 Exchange | Does It Still Qualify
Posted by Meredith Folger Amon on
Investor Notes | New Construction + 1031
Builder Conveys Title Before the CO: Would It Still Qualify for a 1031 Exchange
This is one of those Gulf Coast questions that sounds simple until you are staring at a calendar and a construction schedule at the same time. A builder or developer tells you they can convey title now, but the certificate of occupancy (CO) will come later. If you are in a 1031 tax-deferred exchange, you immediately wonder: if I can take title, does that mean I have “received” replacement property for 1031 purposes, even without the CO.
“In a 1031 exchange, the IRS cares about what you received and when you received it. The coast cares about whether you can actually use it.”
The distinction I keep front…
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