1031 Exchange - Like Kind Question

[Tom Knox]

I am currently going under contract on the sale of a vacant piece of land and would like to defer my gains into a STR condo. Would this qualify as a like kind exchange? If so when would i need to specify to the title company and agents that this is my intent. I would not be doing a simultaneous exchange.

Any information on this would be greatly appreciated. I have reached out to a CPA nut will not get a chance to speak with them in detail until next week.

Thanks in advance. 

Tom

[Mark H. Porter]

Tom, the exchange should not be an issue. Just keep in mind that the assets are something you can see and touch. The SFH must, however, be valued at equal or greater price and if you have a loan on the land that must be matched in the SFH. There are some intricacies as to what is and is not included in the calculation of gains.

As to when to declare, it needs to be done before the closing on the land.  A QI like Dave Foster on here will give you and you lawyer instructions that must be adhered to at closing.  You then have up to 45 days to identify a replacement property and up to 180 days to close on that target.