Mar
31
Can I do a 1031 exchange with money from the sale of a long-term lease?
By
I have a long-term lease on a large commercial building. I’d like to sell this lease and re-invest the money in the purchase of an investment property. Do I qualify for a 1031 exchange in this case?
Repossession
Related articles:
- Can I use a 1031 Exchange to buy new property when selling commercial property? I own a building and I converted it from apartments to condos. I have sold four (of six) and I want to take the proceeds from the last sale...
- Net Net Net Lease Many investors are looking for a safe place to put their money with the wild fluctuations in the financial market. Stable, predictable investment vehicles are increasingly hard to find,...
- Interpreting Benefits of Ground Lease for Sale in Houston Houston may seem like a big, bustling city, but it’s not all grown up yet. There are still both residential and retail investment opportunities, both within the city itself...
- how can I raise money for my start-up “hard money” hedge fund? It is a start-up, we have no track record however I am putting 100k of my own cap. into it, we invest only in 1st mortgages on commercial property...
- Commercial Property Investors See More Short Term Pain as Market Nears Bottom Commercial property investors received another battering as a raft of bearish forecasts and store closures poured more gloom on the retail sector.As the numbers of retailers closing their doors, ...
1 Comments
June 25th, 2009 at 8:59 pm
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.