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rules regarding 1031 in New York
I live in New York City and I am selling an investment property in California, a single family house, and I am planning on using 1031 to buy investment property in New York City. My wife read online that if you use 1031 to purchase an investment property in NYC that as far as houses are concerned, you can only purchase a multi family house and not a single family house or houses. I tried to look this up online but cannot find any information to confirm or refute this claim. Does anyone know anything about this? Thanks in advance.
Quote from @Ryan Yu:
I live in New York City and I am selling an investment property in California, a single family house, and I am planning on using 1031 to buy investment property in New York City. My wife read online that if you use 1031 to purchase an investment property in NYC that as far as houses are concerned, you can only purchase a multi family house and not a single family house or houses. I tried to look this up online but cannot find any information to confirm or refute this claim. Does anyone know anything about this? Thanks in advance.
Seems suspect. Bring in the big dogs. @Dave Foster
Your wife is incorrect.
A 1031 exchange is for a "like kind" exchange.
That means real estate held for investment purposes must be exchanged for real estate held for investment purposes. Art must be exchanged for art. Cars for cars, etc. There is no unit requirements in a 1031 exchange.
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#1 1031 Exchanges Contributor
- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
@Scott Wolf thanks for that shout out. I feel like I should be in a Ted Lasso episode :)
@Ryan Yu, Like @Russell Brazil said, the 1031 exchange is the sale of any type of investment real estate anywhere in the country. Followed by the purchase of any type of investment real estate anywhere in the country. Type doesn't matter.
What gets people confused sometimes are the terms "like kind" and "qualified use". Like kind simple means real estate. Qualified use means held for investment. You can sell your SF in CA and purchase any other type of investment real estate you want in NY.
