Any TBN'ers know about Starker (1031) exchanges for real estate?

[newbury]

I've a house that I'm planning on selling in a few years and I'd just as soon NOT pay all the taxes, I'd rather roll it into land n Mississippi.

When I first read about Starker exchanges over 10 years ago it seemed one could sell a rental property and buy timberland.

Reading about it recently it seems they might have changed the rules a bit.

Anybody here know more about it?

 

[OrangeAgain]

Is the house you are planning on selling a rental?

I sold a residential / commercial building last year and put the proceeds into a 1031 Exchange account with a local intermediary. The Feds require this so I don't have use of the funds. I had 45 days after closing to select up to three income producing properties I wanted to consider rolling the funds over in a purchase of one or more of them. You have up to 180 days after closing to purchase one or more of the three properties. The 1031 Exchange would have delayed the Capital Gains tax until the new property was sold.

I did select three properties and purchased one of them however I ended up taking the funds out of the 1031 Exchange account and purchased a farm with income producing features however we wanted to use the main farmhouse as a home away from home. 1031 Exchange regulations require that the new property be 100% income producing. Our Capital Gains tax is due 4/15/2015.

 

[oosik]

I read thru the IRS section 1031 and its complex. Strongly suggest you consult with a real estate agent or real estate attorney before jumping into this pot. Section 1031 is a typical government document - written so its only obvious to those who deal with it every day.

The one thing that was very obvious - it does not relieve a person from paying capital gains tax - it defers payment until a later time.

 

[randy41]

1031 exchanges require that the properties be held for trade or business or investment meaning no personal use. otherwise real estate for real estate is a valid 1031 exchange.