1031 taxable boot

[buildalot1]

I recently did a 1031 exchange where I sold one rental and tried to buy 3 replacements. The first 2 completed, but the 3rd fell out of escrow leaving some excess funds in the 1031 account. Its too late to identify any new properties, and the left over funds can be refunded to me in August. Can I wait until next year (2019) to receive the funds so I don't have to put it on my 2018 taxes? The reason is I expect to be in a lower tax bracket next year. If so, how would it be reported? and are there any potential issues to be especially aware of? Note that a small amount of the 1031 funds already went to pay for non allowable things like mortgage cost on the two successful replacements. Not sure if that complicates things any.

[TaxGuyBill]

Just to let you know, TurboTax is not able to do multi-asset exchanges like that.  So you would need to either know how to manually fill out the forms, or go to a tax professional for 2018.

[Stinkerbellkity · Accepted solution]

No, it does not make any difference when the funds are withdrawn by you.  You claim them in the year they are available to you, which is 2018.  There is no way to avoid the requirement to claim them in 2018.