The Lazy 1031 Exchange: Generating Losses to Offset Capital Gains

[@someone-3451]

Do you have to be a real estate professional to use the lazy 1031 exchange? I'm not, and from a "trial" in my tax software, it looks like it just creates a large suspended passive loss on a new column of the Schedule E for the new property, but doesn't have any impact on the capital gain on the 1040. What am I doing wrong?

[@jeffg8073]

Wish I knew this is 2023! Thanks for the topic.

[@LooseSmile]

Thank you for this information.

[@I_amMe.]

So for this lazy 1031 exchange, does the net sales proceed has to be held by an intermediary company?

[@BenJimenez-n3p]

No, this is why it is called a lazy 1031 exchange. You are Not using the QI not are your restrained to the clock of 45 days to acknowledge the property or properties or the 180 days required to close.