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Updated over 7 years ago on . Most recent reply
1031 use for Franchise sale
Newbie to 1031's here. Ive been reading up and ive had difficulty finding an answer. I own a business that I am selling and I will pull out a chunk of money after paying off the remaining debt service. Does anyone know if its possible to use those funds towards a multifamily or other investment property with a 1031.
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#1 1031 Exchanges Contributor
- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
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#1 1031 Exchanges Contributor
- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
@John Alexander, Actually the answer is yes. In the sale of a business you may exchange the land/building assets for other investment land/buildings. You may also exchange the FFE for similar class/use FFE. This is more restrictive than the rules surrounding the exchange of real estate.
However, you need to be paying very close attention to the new proposed budget which will eliminate the exchangeability of FFE in a business sale.
- Dave Foster
