Like Kind Exchange

Forum|Forum|1 year ago
November 26, 2024
2 replies
15 views

Husband and wife have LLC with two rentals which they are selling. They wish to buy a personal second residence. Does the new purchase qualify for a like kind exchange. Would it have to be in same LLC name (they wish to close out the LLC).

ProSeries Professional

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Best answer by Terry53029

A 1031 exchange is specifically intended for investment or business properties. Personal properties are not eligible

T

Terry53029

Answer

Intuit Community Champion

A 1031 exchange is specifically intended for investment or business properties. Personal properties are not eligible

abctax55

Level 15

Rental property for a personal residence - even if a second home - would not qualify.

They would have to rent out that property for a while (the exact time line isn't defined in the IRC). They could then go wink, wink, nod....well, despite our ORIGINAL intention for this to be a rental property we've decided to make it a personal residence.

Intent at the time of the exchange is important.

HumanKind... Be Both