Good Evening Mike
"the cash that the QI used to close month properties has no relevance here"- You are saying that the amount of cash the QI wired to close replacement property A vs replacement property B does not matter, correct? I thought that was the case I just wanted to confirm that.
The QI wired the funds to close the first property A with $3500 left over. I wired $170K to close the 2nd property B and the QI wired the remaining $3500.
But it sounds like that doesn't matter that I can just divide the exchanged basis (the adjusted basis of the sold property minus exchange expenses) between replacement prop A and replacement prop B based on their Fair market values. Another way of looking at it would be that I allocate the deferred gain between replacement prop A and replacement prop B based on their fair market values. It sounds like the IRS doesn't care about how much cash the QI wired to each property. Does this make sense?
Thank you for your help.
