Stuart O. Bronstein wrote:
- quote -

Real estate is real estate for 1031 purposes.

Regards,
Bill
~~~~
Associate Professor of Accounting
Longwood University
Department of Accounting, Economics & Finance
http://www.longwood.edu/staff/wpbrown/
Opinions expressed by me are mine, not my employer's.

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stephanie[at]nospam.com (Tim) wrote:

- quote -

He's using the entire property for production of income or
for investment, so it qualifies for 1031 purposes.

The real question is, what can it be exchanged for? This
has to, after all, be a "like kind" exchange. The farmhouse
on five acres may well qualify for exchange for other
residential rental real estate. The farmland may not. So
be careful with this.

Stu

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Tim wrote:

- quote -

Only if he finds what is called "like kind" property for
which to exchange it. This can get tricky, btw, so consult
a local tax pro in your area; either an Enrolled Agent (EA)
or a CPA.

Cheer$,
Harlan Lunsford, EA in LA

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- quote -

It would seem to me that both the land and the house are in
bonafide service.

Keep in mind that the 1031 rules call for an exchange and
that the rules are relatively strict.

There are a number of "accomodators" with some very
affordable costs who seemingly do a good job.

Key is having some handle on the next investment property.
I am not wild about the tenants in common prospects--even
though the IRS has seemingly OK'd it, it seems one more
layer of costs --but it does bridge the issues.

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"Tim" <stephanie[at]nospam.com> wrote

- quote -

Yes.

--
Snowmen fall from heaven unassembled.
-------------
Paul A. Thomas, CPA
taxman at negia.net

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Client in Chicago has a 480 acre farm in southern Wisconsin.
He used the house on the farm as a vacation home for 20
years and has rented it out for the last 4 years. He has
always rented 475 acres to adjacent farmers. He has an
offer to sell it to a company that will farm the entire
480 acres. Does the property qualify for a 1031 exchange?

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