Such Properties or assets acquired and held for sale will not qualify as used in a trade or business or possessed for investment and will typically not be suitable for 1031 exchange treatment. The acquisition of property for the sole purpose of fixing it up and then selling it, or what is also referred to as flipping property, is a classic example of a property being held for sale and not held for investment. Obtaining a multi-family property and converting into condos or something similar and then selling individually is an excellent example of property held for sale and not for investment.
In addition to all mentioned previously, personal property also qualifies for 1031 exchange treatment if the qualified use property requirements are met. State law generally dictates the determination of whether a property is classified as real or personal property.
Domestic Property versus Foreign Property
Property sold in one state can be exchanged for property located in another state, if they are located within the US. Domestic property cannot be exchanged for non-domestic property. Since specific state and/or local exceptions may apply, it is best to consult with the local legal and tax advisor. Get current 1031 exchange property list.
Engage our services for a profitable 1031 Exchange and defer Taxes
1031 Exchange enables your money to churn the maximum profit for you. However, the exchange process is extremely complex in nature, and it would be wise to seek guidance from expert professionals. We have extensive experience in handling highly profitable exchanges for our varied client base.
For consultation and assistance regarding 1031 exchange and to get 1031 exchange property list call – 888-993-2835 or email us at firstname.lastname@example.org.