Letter of good standing and 1031 Exchange

[Anthony Petrarca]

Hopefully someone can shed some light from experience.

I'm in Rhode Island and going to do a 1031 exchange and my accountant needs to obtain a letter of good standing from my state. The accountant claims that I need to identify the actual property ( not properties) I plan on exchanging in order to obtain the letter of good standing. My RE atty spoke to the division of taxation and they said this is false, but my accountant has a way of making people look dumb and is usually correct and said he had an investor recently lose a deal and have to pay cap gains because of this. Anyone?

[Wayne Brooks]

Yeah, the Letter Of Good Standing is simply evidence that your entity is still legally able to transact business in that state.  The identifying of an exchange property has nothing to do with that.

And, you Can identify multiple properties, following the 1031 guidelines.

@Dave Foster knows a thing or two about this.