Constructive Receipt 2022-06-22 08:00:00

Constructive Receipt

Constructive receipt is direct access to tax-deferred like-kind exchange funds or other property by an exchanger completing a tax-deferred like-kind exchange.

Unlike actual receipt, constructive receipt does not require physical possession of the item; for example, if exchange funds are held in an account which the taxpayer has access, even if the taxpayer does not withdraw such funds, could still be considered constructive receipt.

Any receipt (actual or constructive) of the tax-deferred like-kind exchange funds during the exchange period will disqualify the entire tax-deferred like-kind exchange transaction under IRC Section 1031.

 


The 1031 Investor's Guidebook

Download The Guide To 1031 Exchange

Tackle the art and science of completing your 1031 exchange.

By providing your email and phone number, you are opting to receive communications from Realized. If you receive a text message and choose to stop receiving further messages, reply STOP to immediately unsubscribe. Msg & Data rates may apply. To manage receiving emails from Realized visit the Manage Preferences link in any email received.

Capital Gain Tax Rates by State

View View the Capital Gains Tax Rates by State