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Questions for 1031 exchange

Questions for 1031 exchange
1. Can I sell a rental residential property and exchange it for a business ( example restaurant business)? Would such an exchange qualify for a 1031 exchange? Pls not in a business, I will NOT be buying the Real Estate. Only the Operations.
2. Can I buy the business first and within a few months later sell the rental property and use the 1031 exchange? Because it is difficult to time both transactions at the perfect time.
3. Are there any rules re: 1031 exchange of residential property to a business? Is the entire business qualified for a 1031 exchange or is it only the Goodwill etc? (I will NOT be buying the Real Estate. Only the Operations)
Your help would be highly appreciated.
Thank you in advance, Rita
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Reply to
ritagoldman101

A 1031 exchange has to be "like kind," meaning the exchange has to be one kind of property exchanged for the same kind of property.
Assuming you are talking about two properties that qualify for a 1031 exchange, the properties both have to be identified as the ones being exchanged within 45 days of each other, and the second transfer must take place within 180 days of the first transfer.
It is actually more complicated than that, and you should do it through a professional - do not try this at home!
A qualified 1031 exchange can be with anybody - individual, business, nonprofit, whatever. But it has to be an exchange for "like kind" property.
___ Stu
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Reply to
Stuart A. Bronstein

So I believe the answer to her question 1 is, thus, NO. Correct?
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Reply to
Pico Rico
Questions for 1031 exchange
1. Can I sell a rental residential property and exchange it for a business ( example restaurant business)? Would such an exchange qualify for a 1031 exchange? Pls not in a business, I will NOT be buying the Real Estate. Only the Operations.
2. Can I buy the business first and within a few months later sell the rental property and use the 1031 exchange? Because it is difficult to time both transactions at the perfect time.
3. Are there any rules re: 1031 exchange of residential property to a business? Is the entire business qualified for a 1031 exchange or is it only the Goodwill etc? (I will NOT be buying the Real Estate. Only the Operations)
Your help would be highly appreciated. =============
1) No. Not like kind. Must be real estate for real estate. 2) Moot. However, the 1031 timing rules state: A) Exchanged/replacement property must be identified in 45 days. B) The exchange must complete within 180 days. 3) Moot. Not an exchange.
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Reply to
D. Stussy

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