Understanding Slightly Complicated 1031 Exchange

[Harris L.]

I know I can ask the 1031 exchange experts directly here through private messaging but I think this can be a helpful conversation for some other members in the forum.

I have a business partner that we own a commercial real estate together 50/50 in Silicon Valley.

And both of us have our own residential rentals.

One of our conversation was to 1031 exchange our office condo to a multi-family 5+ property. 

However we are exploring other options will any of these work?

1. office condo exchange to 2 separate properties (property could be different types) both our names on both properties

2. office condo exchange to 2 separate properties one under my name and the other under his name.

3. 1 of my property, 1 of his property, office condo exchange to one multifamily apartment - adjust by adding capital so we end up 50/50.

4. 1 of my property, 1 of his property, office condo exchange to two multifamily apartment (one under his name and one under my name)

I'm sure there a several minor details that needs to be worked out but we are just in the brainstorming stage.

[Thomas Rutkowski]

Originally posted by @Amit M.:

@Dave Foster slightly off topic, but related- is there a way to sell an investment property and exchange it into an investment property overseas? Maybe through a TIC or some other intermediary exchange? Thanks

 Another strategy besides a 1031 Exchange for deferring capital gains tax is a Monetized Installment Sale. This allows you to get cash at closing and 30 years of tax deferral. With this strategy you don’t have to worry about the tight 45-day timeline to identify a replacement property. And with cash, you have the freedom to shift your investments into what ever you want, like a project overseas. Happy to explain further. PM me if you'd like more details.