1031 exchange: 1031 Exchange Loophole - 07/10/07 04:43 PM
I was a little surprised today when I was discussing a 1031 Exchange with an Investor client of mine, and he told me that he didn't need to do a 1031 Exchange.  He said his loan officer allows him to refinance his place and told him to use up the equity loan so when the attorney calls for a payoff, his property is showing no or little profit.  Is this really legal?  Can't the IRS go back a year or something to see if a refinance has been done? … (10 comments)