1031 Exchange Real Estate
1031 exchange real estate
What does 1031 exchange real estate look like? Is it houses or apartments or commercial property, or what?
A lot of different kinds of property can become part of a 1031 exchange deal. The key here is that a certain kind of property has to be matched with a certain kind in a successful deal.
We call this “like kind” property. As long as the deal is done for like kind property, it can be a valid 1031 exchange (supposing all of the other criteria outlined by a QI are met.)
Suppose you have a number of condos or apartments on a plot of land, with a homeowners association and all that entails. Other kinds of similar properties will qualify as like kind.
You can have a residential single-family house or a duplex and in states where oil, timber, and co-ops are deemed real estate they qualify too as does anywhere a plot of land sitting empty. As long as any of these are exchanged for like kind, you’re still in the green zone as far as 1031 exchange deal acceptance.
You can exchange multimillion dollar property as well –this just requires a higher level of sophistication – often into a TIC. Whether the amount is $100,000 or $10,000,000, the service is the same.
There’s a great diversity of types of property in commercial real estate. As long as you acknowledge the like kind rule and buy the real property and not the business, you can wheel and deal on these types of properties as well.
Look through the rest of the website for more information on the nuts and bolts of a 1031 exchange, how it works, and what you need to do to be on solid ground.