Constructive receipt occurs when the person completing their 1031 exchange has procured the right to receive and control the sales proceeds–directly or indirectly. This is not an ideal situation as it violates one of the rules of a 1031 exchange, which is that you need to move all of your exchange revenue into a replacement property.
1031 Exchange – Constructive Receipt
Constructive receipt occurs when the person completing their 1031 exchange has procured the right to receive and control the sales proceeds–directly or indirectly. This is not an ideal situation as it violates one of the rules of a 1031 exchange, which is that you need to move all of your exchange revenue into a replacement property.
