Short term gain excusable?
We were joint tennants on apt complex with another couple who went psycho, and we were forced to let them cash us out after only 10 months. Lawyers and everything.
There is NOTHING to 1031 into, do we have any loophole for a more favorable tax rate on gain realized?
If you are already "cashed out", then you have already realized your profits.
Sorry, you do not have any tax deferral options at this point.
Well, the money is with a facilitator for 1031 exchange... it was a force out, tho. That's the crux of the biscuit.
I am sure that you are well aware of the 1031 rules governing the timeframe to complete the exchange, but I will repeat them here for the benefit of others reading this thread.
1. If you fail to identify a replacement property (or properties) within 45 days of the sale of your relinquished property, your sale becomes a fully taxable event.
2. If you fail to complete the purchase of an identified property within 180 days of the sale of your relinquished property, your sale becomes a fully taxable event.
If your sale becomes a taxable event, perhaps you have paper losses in some other investments (stocks, perhaps) that you could sell. Use your losses to offset your capital gains.
Consult your tax advisor for specific details.