When can selling expenses be paid from the exchange balance?
A-1b In general, selling expenses can be paid at any time during the exchange period without affecting any of the safe harbors under Reg 1.1031(k)-1(g) if they are transactional items under Reg 1.1031(k)-1(g)(7); otherwise, they must be paid in accordance with the limitations set forth in Reg 1.1031(k)-1(g)(6).
