1031 Question

The question is: Can a piece of property identified and contracted for, but not yet closed on, be used in the exchange of the proceeds from the sale of an original property which would be sold after the date of the new properties contract but prior to the closing on the new property?

Yes. The dates of the contracts are not relevant. The relevant dates are the dates of transfer of title of the respective properties. As long as prior to the closing on the relinquished property an exchange agreement is executed calling for the proceeds of the first closing going to the qualified intermediary and then a second closing within 180 days from the first whereby the funds are paid into closing and the exchangor receives the repalcement property, the requirements of the safe harbor regulations are met.