1031 Exchange

searcher profile

July 21, 2023

by a searcher from University of Massachusetts at Lowell in Boston, MA, USA

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!

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commentor profile
Reply by a professional
from University of Denver in Denver, CO, USA
^redacted‌ 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.
commentor profile
Reply by a professional
from Walsh College of Accountancy and Business Administration in Detroit, MI, USA
Based on the facts above Section 1031 does not apply. Specifically, Section 1031(a) says - No gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or for investment if such real property is exchanged solely for real property of like kind which is to be held either for productive use in a trade or business or for investment.
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