@j g wrote:
At this point I'm looking for a cutoff % in any 1031 setup..........Where's the cutoff that creates a legitimate 1031 exchange?
First of all, there are strict rules for 1031 exchanges. You cannot simply sell your property, receive the proceeds, and then purchase another property within a certain time frame to effect a valid exchange for federal income tax purposes. Almost in all instances, a party will use a qualified intermediary (QI), aka 1031 exchange facilitator, who will receive the proceeds and the deeds and then distribute both accordingly.
Next, the "cutoff" has an impact on the amount of deferral, not the validity of the exchange (which is explained, in short, in the paragraph above).
Again, if you exchange property you own that has a fair market value that is higher than the fair market value of the replacement property, you are most likely going to have "boot" to the extent of the difference.
