Can Funds In A 1031 Exchange Be Used For Repairs On The Acquired Property?
If a piece of property acquired in a 1031 exchange requires repairs at the time of purchase, can 1031 funds be used for these repairs if the work is done within the 180 day window? I know that repairs could be done by the seller and added to the cost basis of the property, but I am purchasing “as is” homes where the seller is unwilling to do this. In the case of major repairs such as plumbing or HVAC, it would be nice if I could meet these costs from the 1031 pool instead of liquidating 1031 funds, and then having to amortize the cost of the repairs.

