I will be making a 1031 exchange and so Im wondering if I can buy REO property as a "qualifying property" to satisfy the IRS. Is it possible?
I will be making a 1031 exchange and so Im wondering if I can buy REO property as a "qualifying property" to satisfy the IRS. Is it possible?
As long as the REO property you plan to purchase will be held for an investment use, it satisfies the qualifed property rules.
You may want to check out my articles, I'm doing an entire series on 1031 Excange that may benifit you. You can check it out at: http://acaciacoinc.com/blog/2009/04/17/avoiding-real-estate-transfer-tax-as-an-investor-pt-1/
hi fredrick
thanks for the link I am up to page three and very interesting we don't have anything like this in Australia does it matter if the one property in say in new york and the traded property is in ohio does the tax holding go across state boarders
maybe a silly question I am trying to get to grasp with what is held within the boarders and what is across the boarders as we are looking at different states so I have to try to get my head around your rules to oyrs so I can work out what I have to swat up on.
and also the best path to invest when we are looking at saterlite investing or holding and defering tax does help
are there restrictions in the form of entity that can buy hold and differ the tax.
forget the primary house, flip etc as we are buy finished and hold inc comm.
what are the types of entity that can't use this 1031 rule
by teh time I read your 12 pages I will understand it but need to see if its something I need to add to the structure on setup.
if this all make sence if not email me
Hi Grossreall,
You can defer Federal taxable gains as long as you 1031 exchange between any of the 50 states. There are some states that have some differences.