CAN I DO A 1031 EXCHANGE WITH MONEY FROM THE SALE OF A LONG-TERM LEASE?
I have the long-term franchise upon the vast blurb building. I’d similar to to sell this franchise as well as re-invest the income in the squeeze of an investment property. Do we validate for the 1031 sell in this case?
Posted on November 6, 2009 at 1:21 am by admin · Permalink
In: Tips · Tagged with: 1031, Exchange, From, Lease, Longterm, Money, sale, with
In: Tips · Tagged with: 1031, Exchange, From, Lease, Longterm, Money, sale, with
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on November 6, 2009 at 1:21 am
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Yes, the sale of a lease is “like kind property” for other real estate.
However, in order to qualify for 1031 treatment, your lease must itself have been held for investment or the production of income. In this case, that means that you could not have have been using the leased premises for your business activities.
Finally, you will have to comply with the other requirements for 1031 treatment.
Please re-post with additional facts to clarify this point.
Hope this helps.