1031 Exchange for a 2-family into a Gas Station?

[Daniel Hanson]

Hi all,

First post here.  I am planning to sell a residential duplex this year that has built up some equity, and am also in the early stages of purchasing a gas station.  Is it possible to 1031 exchange the duplex into the purchase of the gas station, or are they not considered like kind transactions?

Thanks,

Dan

[Robert Hetsler]

yes it can be done but there might be personal property in the gas station that might need to be allocated out.  I would try to structure the contact in such a  way as to keep the purchase price of the real property associated with the replacement property of equal or greater value than the property you are selling.  That is just one thing you can do to help yourself but the general answer is yes for 1031 purposes the answer is yes when looking at the big picture, assuming you are purchasing the real property or a long term lease on the station.  If there is a lot of inventory for sale in the gas station that is where you have to have a reasonable and articulate method by which you arrived at your allocation