You make the call

Question: Your client decided to do a like-kind exchange. However, she did not use a qualified intermediary. Instead, she took the money from the sale and waited to purchase a replacement property later. Can she report this as a like-kind exchange?

Answer: Unfortunately, the answer is no. That is because she received the proceeds from the sale of the relinquished property (referred to as “constructive receipt”). [§1031(b)]

She may still qualify to defer recognizing the gain by reinvesting in a Qualified Opportunity Fund (QOF) within 180 days of the first sale. For more information, see the IRS’s webpage on investing in Qualified Opportunity Funds.