Is it a 1031 exchange when someone sells a business and property its on for multiple condos? Any rules Client should be aware of?

[Just-Lisa-Now-]

Is selling a business and commercial property a "Like Kind " exchange for multiple condos?

[IRonMaN]

It is if the business involved owning multiple condos :smile:

[qbteachmt]

It's not a "1031 exchange" just because someone changed to the same type of property or to a different type of property.

It's a "1031 exchange" when you do it within the framework of a 1031 exchange requirements, including the services of the qualified intermediary to handle the "funds exchange" part of the process, which is an escrow activity.

[Tax-Preparer1]

What if the land was valued at $500k and the business at $100k... would the $500k in land portion of the exchange be considered for the 1031 exchange?

[qbteachmt · Accepted solution]

The Exchange has to have already been done through the escrow process using an intermediary.

There is Nothing you can do after the fact. The 1031 exchange is a Process for how the selling and then the buying happen inside of the process. It's not a tax entry now; it was supposed to be how it happened when it happened.