The 1031 Exchange: An Intriguing Perspective and Examples
Investors
often mistakenly believe they must acquire property just like
their relinquished property. They are surprised to learn a wide
variety of properties can be considered “like-kind”.
So, contrary to what may have concerned you, we DO have a latitude
and an intriguing perspective from which to make choices under
the 1031 Exchange plan. Think of it this way: “Like Kind”
does NOT refer to the nature, character or type of property.
Instead, it is all about the intended use of the property. Provided
the property is initially acquired and held for either business
or investment purposes, it can qualify as a suitable replacement
property under IRC Section 1031. Also, real properties generally
are of a “like kind”, regardless of whether the
properties are improved or unimproved.
1031
Exchange Examples:
ASK
janeAnne about 1031 Exchanges
*
A Professional office in Manhattan for a Mountain cabin and land
that you will lease
* A Condo in California for Unimproved Land with a Waterfall in
the Asheville area
* A Single family rental in Chicago for multi family rental in
West Asheville
* Non income providing raw land in Florida for income producing
rental property in the beautiful Appalachians of Western North
Carolina
* An apartment building in downtown Detroit for an office building
in Up-and-coming Mars Hill, North Carolina
REMEMBER:
The Section 1031 Code was amended in 1989 rendering property outside
the United States NON “Like Kind”.
REMEMBER:
Investors do not have to exchange for exactly the same type of
property.
ASK
janeAnne about 1031 Exchanges
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