The questions here were received from interested 1031 exchangers visiting my website. I have chosen to leave the questions intact with their ambiguity, shorthand writing and misspellings so as not to act on the assumption as to what when unclear the questioner meant.
Many people have a question when they hear about a 1031 exchange for the first time – they're asking about what constitutes a ‘like kind’ property.
A ‘like kind’ property refers to real property including what individual states define as real property such as timber and mineral rights from which you can facilitate 1031 exchanges. Geographically the definition is limiting to U. S. , U.S. Virgins Islands and Guam. If you own a property outside of the U.S. you have to exchange that property with another foreign property — France to Mexico, etc.
In certain cases, you can exchange two properties for one. Various 1031 guidelines apply, but your condo being real property, you may be able to combine the properties to make the deal.
In New York, these types of deals can often pass as like kind. Look at the specific details of the co-op building’s setup and whether it represents like kind with a condominium apartment.
Want the best trusted 1031 exchange advice? Call Marilee Hill. She has experience in property management and real estate – understanding all of the alphabet soup involved in the real estate process, such as Delaware Statutory Trusts and other obscure elements of 1031 exchanges.
She also knows that real estate is, at its root, based on people. Let Marilee Hill help you to deal with sponsors and brokers and other stakeholders in a personable and professional manner.
Please contact Marilee Hill for your next 1031 Exchange strategy.