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Updated 19 days ago on . Most recent reply
1031 & ADU Build
Hello! My husband and I currently have a rental home in CA and want to utilize a 1031 exchange to build an ADU on an existing, non primary residence in FL.
The existing Florida home is co-owned with our son, and this is currently HIS primary residence, not ours. The ADU would be utilized as a short term vacation rental.
Would this situation qualify? If so, what are the time requirements for construction? Thanks for any helpful information!
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#1 1031 Exchanges Contributor
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- St. Petersburg, FL
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#1 1031 Exchanges Contributor
- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
Appreciate that shout out @Bill B.. @Angela Simon, If it wasn't your son there is a small chance that your accountant would let you purchase the 50% of the property you don't own. And build an ADU on it using a reverse exchange. This is still pretty complicated. But add to that the related party aspect. And the fact that it is his primary residence and there's all kinds of things that would make the IRS nervous.
- Dave Foster
