1031 Exchange

by a searcher from University of Massachusetts Lowell - Manning School of Business

2 months ago

Self funded searcher here! Has anyone done a 1031 exchange where they sold a property and used the proceeds to purchase a business that does NOT include real estate. It looks like you can but would appreciate your input if you have actually done this before. TY!

2 likes
102 views
8 comments

professional from University of Denver

^Searchfunder member‌ got it correct. You can only 1031 real estate###-###-#### a) used to say "property", but was changed to "real property" in 2017 Tax Cuts and Jobs Act. It must be real property and it must be real property held "for productive use in a trade or business or for investment.". In other words, it can't be your personal residence.

2 months ago | like reply | 2 likes

professional from Seton Hall University - Stillman School of Business

I think that ^Searchfunder member‌ nailed it in his comment above. I do not think I have seen a "like-kind" definition that takes business property and swaps it for real property.

2 months ago | like reply | 1 like

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