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Home sold (not a personal residence) and not a rental. Relative lived there rent free for decades. The next
day client bought another home with same purpose. Can this be for investment use and qualify as like kind e
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To qualify as 1031 exchange - client cannot have received the proceeds from the property sold. Monies have to have been held by realty handling the 1031 exchange.
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Pg, do not take this the wrong way but this is a unique issue and I would suggest that you read up on it and do some research... I'm just trying to help you and just my opinion....
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Couldn't do Section 1031 anyway, the property is not used for business or rental.
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To qualify for like kind exchange treatment property must be held for productive use in a trade or business or for investment. Section 1031(a)(1).
Holding so your relative can live there rent free does not qualify. The rent free use by the relative makes it personal use property under 280A.
Ex-AllStar
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Thank you so much for a straight forward answer. Much appreciated.
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Thank you.
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Thank you for your reply. Much appreciated.
