Felicity owns land valued at $2 million. She has located a buyer for her property. Felicity wants to buy an office building for $2.2 million. The owner of the office building has accepted her purchase offer. Felicity proposed to close the sale of her property and the purchase of the office on the same day. She will contribute cash to make up the difference between the sales and purchase prices. The transaction will be at the same title company in the same hour. The buyer’s cash will be wired to the title company and immediately used to buy the office. Does Felicity need to hire a qualified intermediary, and whether you say yes or no, why?

Answer rating: 100% (QA)

This is a case of 1031 exchange A 1031 exchange is one of a tax deferral strategies remaining available with the tax payers The tax payers should neve... View the full answer