All Forum Posts by: Ken Mull

Thank you

I renovated the property and rented it as a short term rental in this beach community. I rented it weekly for about seven weeks this summer and I have a handful of future rentals scheduled for September and October. The neighbors have been less than welcoming, which is part of the reason I am contemplating selling it. Thoughts? TIA 

Quote from @Dave Foster:

@Ken Mull Yea  @Zaina Jouejati is right on the money here. There is no statutory holding period that states how long you have to hold the property. The standard is your intent and  how you can demonstrate the intent of the property. 

Maybe you put a renter in it for a year, or used it as a short term rental. If your intent was to hold onto the property and a bear moved in next door (True Story) or maybe you receive an unsolicited offer you couldn't refuse, so you decide to sell. As long as your intentions to hold onto the property for investment use are met, It would qualify for 1031 treatment.

I performed a 1031 exchange last November 2023. I have found another property of interest and I am considering selling the replacement property from this previous 1031 and using it to 1031 into this new property. Is there any minimum period of time the first replacement property  needs to be held before using in a 1031.

Quote from @Ken Mull:

Good Morning 

I would like to 1031 a rental property that I hold in my name that is not in my wife's name.

We are trying to buy a foreclosure at auction with cash and would ultimately like to access equity in the above referenced rental property.

There is obviously no time to set up a 1031 in advance due to the nature and timing of the sale of the property we are pursuing.

So, if my wife purchases the foreclosure in cash and titles it in her name only, can I then 1031 at my convenience out of a property that is in my name only? I think I know the answer will be no but need to ask.

Assuming the answer is no is there some way to accomplish this? Could I have my mother-in-law purchase the foreclosure and then 1031 into it at a later date? Or have a friend or entity but it?

Or does anyone have any suggestions that could accomplish this? 

Thank you for your time.

 @Dave Foster Thank you for the information it is certainly helpful, and I appreciate it. 

Thank you for the reply. So, I could win the foreclosure auction this week, set up a cash closing in 30 days. In the interim set up a reverse exchange with a QI and have the QI take title of the foreclosure at closing and have up to six months to sell the old property and roll all proceeds into the new property as long as the new property is equal or greater value to the old property.   Correct? That would fit the bill. I haven't completed a 1031 in the past and don't really have much concept of cost. Can you give me ballparks of cost of regular versus reverse?

Thank you  

Good Morning 

I would like to 1031 a rental property that I hold in my name that is not in my wife's name.

We are trying to buy a foreclosure at auction with cash and would ultimately like to access equity in the above referenced rental property.

There is obviously no time to set up a 1031 in advance due to the nature and timing of the sale of the property we are pursuing.

So, if my wife purchases the foreclosure in cash and titles it in her name only, can I then 1031 at my convenience out of a property that is in my name only? I think I know the answer will be no but need to ask.

Assuming the answer is no is there some way to accomplish this? Could I have my mother-in-law purchase the foreclosure and then 1031 into it at a later date? Or have a friend or entity but it?

Or does anyone have any suggestions that could accomplish this? 

Thank you for your time.

Hello

I own a rental property that has two houses on one acre of land. The property has two addresses and two tax maps and one deed. I have rented both houses for several years and I am now considering subdividing the property, demolishing one one or both of the houses and building one or maybe two new houses.

Since they are both investment properties can I sell the new house and 1031 into another investment property and avoid the capital gain on the sale? Would that be two 1031 exchanges?

Thank you in advance. 

Yes. My intention is to rent it out.

Contemplating a 1031 . Relinquishing one multi-family rental and acquiring a SFR for vacation rental. The 1031 puts time constraints on the deal but gives you nice tax benefits. The cash out refi give you some cash and also is tax free correct? I seem to remember some seasoning necessary for the refied property. Is that the case? Do you need to hold that property some minimum time to keep the tax benefit? What are the pros and cons to those two options? Thank you