I'm in the process of filling out my 1031 exchange information and came across this situation:
I'm being asked to enter enter cash used but not received for exchange expenses. When I investigated it further it appears to be treated as a boot (or taxable money received) when looking at the form for form 8824 line 15 A.
Articles on many different exchange website's indicate that the intermediary exchange fees should be added to the basis and are normal customary fees (e.g. https://1031ex.com/1031-exchange-closing-costs.php ) so what is being asked for in this area and why? Should the wording after "cash received" be ignored entirely?
Also, the next screen asks for exchange expenses that are sales related. Shouldn't this include qualified intermediary expenses and also some fees for buying the replacement property? Same situation as prior paragraph - several 1031 exchange websites (e.g. IPX closing costs and Blogs on selling expense ) indicate some fees to buy the replacement property are considered part of the exchange process (e.g. Title fees) and should be considered exchange expenses.
Here is the another article completely going a different direction on the topic...with a focus on the word acquisition. ipx 1031 acquisition I'm under the impression TT went with this last article with a loan acquisition focus (mine was a no loan purchase btw and I still had to pay title fees to acquire), but it is a misinterpretation per the other two websites. Does anyone know?
