Discussion:1031 exch & reverse 1031 on one property?
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Discussion Forum Index --> Advanced Tax Questions --> 1031 exch & reverse 1031 on one property?
Discussion Forum Index --> Tax Questions --> 1031 exch & reverse 1031 on one property?
ReadMyLips (talk|edits) said: | 8 January 2009 |
| I have a slightly unusual situation-
Client has a rental property that is worth $800k and wants to purchase a 50% interest in an inherited property from the other beneficiary (client inherited the other 50%). The 50% interest is about $400k so they will need to include another property of $400k or more to make an exchange work. They would like to purchase another property for approx $400k but don't want to do it right now since the market isn't great. Question-can the rental property be split into two pieces valued at $400k each-do a reverse exchange on the first property that they want to purchase now and an regular 1031 exchange on the property that they have not yet identified after they sell the rental? The way I see it, they would need to sell the rental property within 180 days of the purchase of the first property and purchase the second property within 180 days of selling the rental. Any comments or suggestions are greatly appreciated. | |
