1031 Exchanges
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 8 years ago,
Tricky 1031 exchange w/ condo conversion
Here's a 1031 challenge I am currently going through now...
In March 2014, I purchased a small two family owner occ with a tenant renting the other unit.
In August 2014, I moved out and have been using it as an investment property ever since.
Now both of my tenants are interested in purchasing their units, so I am thinking it is a good time to turn it into condos (was physically condo-ready when I bought it, so it is just legal/paperwork), create some value, and re-invest in a larger property.
I would like to use the 1031 exchange (this would be my first time doing so, total novice here) to avoid paying capital gains and depreciation recapture, but I cannot figure out if this would apply to my situation since I am technically selling the property as two separate transactions.
Does anyone have experience doing something similar?
Any advice?
Thanks!
John