How do I get access to tax free cash in a 1031 exchange?

If you need access to tax-free cash, borrow against your Relinquished Property well in advance of your 1031 exchange or borrow against your new Replacement Property after you've successfully acquired and closed it. This is possible because borrowing does not necessarily trigger a taxable event. However, if you attempt to borrow too closely to the start of your exchange, an argument could be created that your borrowing effort was a part of a stepped transaction and therefore not eligible for deferred gain treatment under IRC Section 1031.

If you need access to tax-free cash, borrow against your Relinquished Property well in advance of your 1031 exchange or borrow against your new Replacement Property after you've successfully acquired and closed it. This is possible because borrowing does not necessarily trigger a taxable event. However, if you attempt to borrow too closely to the start of your exchange, an argument could be created that your borrowing effort was a part of a stepped transaction and therefore not eligible for deferred gain treatment under IRC Section 1031.