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1031 exchange.
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<blockquote data-quote="cris1031" data-source="post: 1065837" data-attributes="member: 21347"><p>There are many nuances to 1031s, but here's a summary:</p><p>- property must be held for trade, business or investment. Personal use property (2nd homes), principal residences and property held for sale (dealers, flippers) does not normally qualify</p><p>- real property is only like-kind to real property; and personal property like-kind to personal property. For animals, the same sex must be involved. I've handled cows to cows, stallions to stallions</p><p></p><p>Shares in a corporation to real estate would not qualify for 1031 deferral, nor would the sale of a partnership interest. That is not to say that corporations and partnerships cannot do exchanges - they certainly can. </p><p></p><p>Most exchanges today involve selling to one party and acquiring from a different party - a delayed exchange. "Swaps" are still allowed, but very difficult to find.</p><p></p><p>Here are other examples of allowed exchanges:</p><p>1) Conservation easement exchanged for commercial/rental property;</p><p>2) Bare land exchanged for 8-plex or other rental property;</p><p>3) Agricultural land for a 50% interest in a commercial office building;</p><p>4) Bare land for a ski condo that is placed in a rental pool;</p><p>5) Farm equipment for other farm equipment;</p><p>6) Crop dusting airplane for a newer airplane.</p><p></p><p>Personal property has a bit tougher like-kind definition as compared to real property, but all of the above are used quite often. I hope this helps!</p></blockquote><p></p>
[QUOTE="cris1031, post: 1065837, member: 21347"] There are many nuances to 1031s, but here's a summary: - property must be held for trade, business or investment. Personal use property (2nd homes), principal residences and property held for sale (dealers, flippers) does not normally qualify - real property is only like-kind to real property; and personal property like-kind to personal property. For animals, the same sex must be involved. I've handled cows to cows, stallions to stallions Shares in a corporation to real estate would not qualify for 1031 deferral, nor would the sale of a partnership interest. That is not to say that corporations and partnerships cannot do exchanges - they certainly can. Most exchanges today involve selling to one party and acquiring from a different party - a delayed exchange. "Swaps" are still allowed, but very difficult to find. Here are other examples of allowed exchanges: 1) Conservation easement exchanged for commercial/rental property; 2) Bare land exchanged for 8-plex or other rental property; 3) Agricultural land for a 50% interest in a commercial office building; 4) Bare land for a ski condo that is placed in a rental pool; 5) Farm equipment for other farm equipment; 6) Crop dusting airplane for a newer airplane. Personal property has a bit tougher like-kind definition as compared to real property, but all of the above are used quite often. I hope this helps! [/QUOTE]
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