03-21-2005, 06:21 AM
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 Re: 1031 Exchange for Condo Pre-Sell "Flyfisher" <flyfisher[at]bellsouth.net> wrote: - quote - > I am interested in using a 1031 exchange for a gulf front
Your accountant is right. You're not selling a condo.> condo that I purchased on a pre-construction basis over a > year ago. This property has appreciated and I have "flipped > it" by selling it to another party (through assignment of my > original pre-sell contract) which will net me approximately > $50K in gain. Closing will be sometime in April when the > condo construction is completed. I would like to go in > partners with another party on a larger condo in the same > development and want to use a 1031 exchange to roll my gain > into my portion of the new condo. My accountant has told me > that the pre-sell agreement is not considered real property, > so I cannot exchange it for the larger condo which is real > property (i.e. it is not a like kind exchange). Is there a > way for me to use the 1031 exchange to roll the $50K into > the new condo? I am not looking to take any cash out. > Thanks very much for any input. You're selling a right which is an intangible asset. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
03-18-2005, 11:45 AM
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| 1031 Exchange for Condo Pre-Sell I am interested in using a 1031 exchange for a gulf front condo that I purchased on a pre-construction basis over a year ago. This property has appreciated and I have "flipped it" by selling it to another party (through assignment of my original pre-sell contract) which will net me approximately $50K in gain. Closing will be sometime in April when the condo construction is completed. I would like to go in partners with another party on a larger condo in the same development and want to use a 1031 exchange to roll my gain into my portion of the new condo. My accountant has told me that the pre-sell agreement is not considered real property, so I cannot exchange it for the larger condo which is real property (i.e. it is not a like kind exchange). Is there a way for me to use the 1031 exchange to roll the $50K into the new condo? I am not looking to take any cash out. Thanks very much for any input. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| 1031, condo, exchange, presell |
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