Does 1031 rental exchange impact FA?

Paying for College
1

<p>Anyone know if a 1031 rental property exchange results in an increase in income for FA purposes? It had other implications?</p>

2

<p>I do not know the answer, but it would seem that by nature of the IRC Sec 1031 transaction (tax-free exchange, you never had your hands on the money) the deferred gain would not increase income for FA purposes under FAFSA. Unless it is considered to be untaxed income??</p>

<p>CSS Profile could see it differently.</p>

3

<p>This is what I was thinking too–since the profits are handled through a third party I am hoping they don’t get included in any income. It would still exist as an asset though.
I’ll look up “untaxed income” for FA purposes and see if I find anything. Thanks. :)</p>