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.
Like Kind Exchange – Location
Our world keeps growing and expanding and getting more complex through the power of technology. Populations are more mobile now than they used to be, and we can move data and goods at speeds that you couldn’t imagine just a few decades ago.
On the other hand, a property that you bought a few years ago at 555 North Main St. in your hometown is still at the same address, in the same state. Real estate is, in that way, static. It’s going to be the same asset day to day and year to year, barring any major catastrophes or a spike in the housing
market.
Although your property will stay the same, your needs may change. You may be moving out of state, or want a family member to take care of your property. Our lives change. The good news is: there is no 1031 ambiguity in addressing this kind of scenario. The 1031 exchange has hard rules, and with the right guidance, you can set up the 1031 that works for you.
Question 1:
For investment property in NJ, want to sell and purchase another investment property in TX.
Answer:
This type of 1031 exchange deal is done every day of the week.
All U. S. property is like kind. All foreign property is like kind to other foreign property. SO if you want to sell in New Jersey and buy in Texas, you’re on solid ground. Now, if you wanted to sell in New Jersey and buy in Barcelona, Spain, that’s another story.
Question 2:
information on internal rev code 1031, like kind exchange. can investment property be like kind exchange from one state to another…
Answer:
Any property in the United States is like kind to any other location in the United States, U.S. Virgin Islands and Guam. It is not like kind to another country. As in the example above – if it’s not a U.S. property, it’s like kind to another “foreign” property outside of U.S. jurisdiction.
About Marilee: Role of Marilee Hill, Registered Representative (RR)
Turn to Marilee Hill, an experienced real estate professional, for help with 1031 deals and other real estate guidance. Hill entered into the securitized 1031 exchange field in 1999 and used her previous experience as a property manager to get a broader view of real estate markets in the U.S. and elsewhere.
Marilee always says “My clients’ success is my success”. She wants clients to succeed, and she knows what this entails. It means getting everyone, including the IRS, on the same page. It means building a 1031 exchange on a firm foundation so testing it doesn’t lead it to wash away.
Please contact Marilee Hill for your next 1031 Exchange strategy.
