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Started By
Message
1031 Exchange
Posted on 10/3/17 at 9:05 am
Posted on 10/3/17 at 9:05 am
Can anyone shed some light or have experience doing a 1031 exchange?
I currently have a rental property in Dallas that I am considering selling and rolling those profits into some property in NW Arkansas. Looking at both raw land and single family homes.
I know to be able to use the 1031 the "new" property has to also be for investment/business use. But if I were to buy raw land and lease it to someone for whatever reason would that qualify? Or if I try to start some type of farming business on that land? Or if I built a small home after the purchase of said land to use for an Air Bnb, should that be any issue?
Also, what kind of intermediary should I use to make sure the exchange is successful?
Ideally I would like to buy the new property with the intention of eventually being able to use on a personal level, maybe while still using as an investment(Air Bnb). Thanks in advance!
I currently have a rental property in Dallas that I am considering selling and rolling those profits into some property in NW Arkansas. Looking at both raw land and single family homes.
I know to be able to use the 1031 the "new" property has to also be for investment/business use. But if I were to buy raw land and lease it to someone for whatever reason would that qualify? Or if I try to start some type of farming business on that land? Or if I built a small home after the purchase of said land to use for an Air Bnb, should that be any issue?
Also, what kind of intermediary should I use to make sure the exchange is successful?
Ideally I would like to buy the new property with the intention of eventually being able to use on a personal level, maybe while still using as an investment(Air Bnb). Thanks in advance!
8
Posted on 10/3/17 at 9:23 am to HBomb
A message board is not really the place to learn about how to transact a 1031 exchange. You should probably contact a CPA.
Posted on 10/3/17 at 9:29 am to NOSHAU
This message board does have investors with sage advice.
Posted on 10/3/17 at 10:09 am to NOSHAU
Just looking for some basic information/tips if anyone has any...
FWIW, I already spoke with my CPA, who had some information, but really nothing more than I already knew from basic google searches.
FWIW, I already spoke with my CPA, who had some information, but really nothing more than I already knew from basic google searches.
Posted on 10/3/17 at 10:31 am to HBomb
They're complicated. Reach out to a professional that has experience doing them.
Posted on 10/3/17 at 10:42 am to HBomb
quote:
Also, what kind of intermediary should I use to make sure the exchange is successful?
Probably a CPA/someone with specific experience in 1031 transactions.
Posted on 10/3/17 at 10:49 am to HBomb
Get in contact with a tax attorney. They will act as the intermediary. In Baton Rouge, my Dad used Gunn & York about 15 years ago for a 1031. He used Gunn, worked well.
Posted on 10/3/17 at 11:50 am to HBomb
www.firstexchange.com
Lots of good information on this site. I used them as the intermediary, but ended up not doing the exchange, because I couldn't find a suitable property. I believe they have an office in Mandeville.
Lots of good information on this site. I used them as the intermediary, but ended up not doing the exchange, because I couldn't find a suitable property. I believe they have an office in Mandeville.
Posted on 10/3/17 at 12:52 pm to HBomb
My basic understanding is a 1031 just can't be used for your primary residence. You could use it for a vacation home for instance, there are no rules on it having income or anything. Its simply meant for real estate that is not your primary residence, because there are different rules there.
Posted on 10/3/17 at 6:31 pm to CHSBears
quote:
Get in contact with a tax attorney. They will act as the intermediary.
Your tax attorney cannot serve as your qualified intermediary. Gunn is a fantastic attorney and very knowledgeable.
Call Title Exchange Company in Baton Rouge. Bill Hyde has been doing exchanges for almost 30 years. Most experienced QI in the State.
Posted on 10/4/17 at 8:54 am to ItzMe1972
quote:Yep, but every sage investor should include in their advice to the OP, " contact a professional sooner than later".
This message board does have investors with sage advice.
Posted on 10/4/17 at 10:15 am to HBomb
I'm a CPA but I don't actively work in tax so I'm not much help. But I remember that those can be a bitch.
Posted on 10/4/17 at 10:21 am to HBomb
A real estate lawyer can do it for you expect to pay around a grand. I've only done it on commercial properties, you can also do a reverse 1031 for a little more money.
Posted on 10/5/17 at 4:46 pm to trillhog
There are 1031s and reverse 1031s depending on the order of things. People either specialize in them or don't do them all together. In Baton Rouge my clients use Patrick Cusick with the Title Exchange Company. Patrick does an awesome job and knows his stuff.
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