Like kind exchange

Forum|Forum|5 years ago
July 19, 2020
1 reply
0 views

Can the sale of a residential rental home and purchasing a restaurant be regarded as Like Kind exchange?

My client wants to sell his rental home and buy a restaurant using Section 1031 exchange.

I am not sure if this exchange is a valid 1031.

ProSeries Basic

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T

Terry53029

Intuit Community Champion

Here is a link: https://www.irs.gov/pub/irs-news/fs-08-18.pdf

S

singhAuthor

Level 6

Thank you, Terry, for the irs web site for 1030 exchange details, but that link still does not answer my question. By reading through the pub. it seems a rental home sale is a like kind exchange with purchase of a restaurant. I hope some one can give me a definite answer to my question.

George4Tacks

Level 15

"purchase of a restaurant" means what? Purchase of a building that the client will be landlord of, or purchase of a business that the client will be running, or purchase of the whole shebang?

Basic concept of like kind is sell a piece of real estate and buy another piece of real estate. Start buying equipment and goodwill with the deal and you begin having difficulties. @singh needs to be clearer in the statement of the question.

Answers are easy. Questions are hard!

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