Written by James Brennan on January 20th, 2007 with Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Settlement Q&A and Calc_Q8 and All the Questions You Were Afraid To Ask About 1031s.
This creates several critical problems for the exchange: First, since the taxpayer has the right to change the escrow instructions and withdraw the proceeds, he or she will be considered in constructive receipt of the proceeds. Similarly, in an escrow context, the taxpayer is a principal and the escrow officer is legally deemed to be an agent of the taxpayer. Consequently, sales proceeds received by the escrow officer are deemed to have been received by the taxpayer as well, even if the taxpayer relinquishes the power to give escrow instructions.
Written by James Brennan on January 20th, 2007 with Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Settlement Q&A and Calc_Q8 and All the Questions You Were Afraid To Ask About 1031s.