Level 6

Question

1031 EXCHANGE

4 replies
37 views

Customer sells building that was his self employed business. Can this customer purchase an RV park in a 1031 exchange or can they purchased raw land to build an RV park in a 1031 Exchange.

His realtor that is a business owner herself with multiple rental properties and has completed several 1031 exchanges tells him no it wouldn't qualify.

ProSeries Professional

Intuit Community Champion

Intuit Community Champion

From what you are saying it sounds like it would be eligible, but here is a link from IRS for you to research

https://www.irs.gov/pub/irs-pdf/i8824.pdf

As a side note the rules changed in 2018, so be sure you are researching for the correct years

Level 15

Not clear from OP, but if client already sold the property and got the money, it is too late to do a 1031 exchange.

The more I know the more I don’t know.

judys3Author

Level 6

Sorry. I just mean if he sells the building can he do a 1031 Exchange to buy the RV Park or raw land to build an RV Park.

Level 15

Real estate for real estate, improved or unimproved, qualifies.

The more I know the more I don’t know.