So because I received the proceeds directly I cannot us a 1031 exchange? Is that correct?
Here is the timeline:
- Sold investment property on Jan 15, 2021 and received the proceeds directly.
- Bought investment property on Feb 25, 2021 that was significantly more than the one sold and I had a larger mortgage.
- All proceeds after paying off the investment property was used to put down on my new investment property which was $41,000.
I guess what I am asking, does this disqualify me from doing the like kind exchange on my 2021 taxes?
