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HBomb
LSU Fan
Dallas
Member since May 2012
143 posts

1031 Exchange
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!


NOSHAU
New Orleans Saints Fan
Member since Feb 2012
3531 posts

re: 1031 Exchange
A message board is not really the place to learn about how to transact a 1031 exchange. You should probably contact a CPA.


ItzMe1972
Member since Dec 2013
1201 posts

re: 1031 Exchange
This message board does have investors with sage advice.


HBomb
LSU Fan
Dallas
Member since May 2012
143 posts

re: 1031 Exchange
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.


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TheOcean
Florida State Fan
#honeyfriedchicken
Member since Aug 2004
38167 posts
 Online 

re: 1031 Exchange
They're complicated. Reach out to a professional that has experience doing them.


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GenesChin
Army Fan
The Promise Land
Member since Feb 2012
29641 posts

re: 1031 Exchange
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.



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CHSBears
Texas A&M Fan
Baton Rouge
Member since Aug 2007
651 posts

re: 1031 Exchange
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.


tigerrocket
LSU Fan
Member since Aug 2008
120 posts

re: 1031 Exchange
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.


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baldona
Auburn Fan
Florida
Member since Feb 2016
4397 posts

re: 1031 Exchange
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.


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11
NEWBIE
LSU Fan
Member since Jun 2008
181 posts

re: 1031 Exchange
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.


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41
OTIS2
LSU Fan
NoLA
Member since Jul 2008
37707 posts

re: 1031 Exchange
quote:

This message board does have investors with sage advice.
Yep, but every sage investor should include in their advice to the OP, " contact a professional sooner than later".


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Hazelnut
LA-Lafayette Fan
Choclate City
Member since May 2011
14388 posts

re: 1031 Exchange
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.


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trillhog
Elite Membership
Member since Jul 2011
19094 posts

re: 1031 Exchange
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.


rmc
LSU Fan
Zachary, LA
Member since Sep 2004
23868 posts

re: 1031 Exchange
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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