1031 Like Kind exchange

Forum|Forum|5 years ago
April 23, 2021
3 replies
18 views

Home sold (not a personal residence) and not a rental. Relative lived there rent free for decades. The next

day client bought another home with same purpose. Can this be for investment use and qualify as like kind e

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Best answer by BobKamman

Couldn't do Section 1031 anyway, the property is not used for business or rental.

dkh

Level 15

To qualify as 1031 exchange - client cannot have received the proceeds from the property sold. Monies have to have been held by realty handling the 1031 exchange.

BobKammanAnswer

Level 15

Couldn't do Section 1031 anyway, the property is not used for business or rental.

P

pg47Author

Level 3

Thank you for your reply. Much appreciated.

PATAX

Level 12

Pg, do not take this the wrong way but this is a unique issue and I would suggest that you read up on it and do some research... I'm just trying to help you and just my opinion....

sjrcpa

Level 15

To qualify for like kind exchange treatment property must be held for productive use in a trade or business or for investment. Section 1031(a)(1).

Holding so your relative can live there rent free does not qualify. The rent free use by the relative makes it personal use property under 280A.

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

P

pg47Author

Level 3

Thank you so much for a straight forward answer. Much appreciated.

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