1031 farmland into small multifamily

[Andrea Smith]

Hello!  

Can I sell farmland and put it into townhomes I plan to rent out?  For example, enough land to build 28 townhomes...

Thanks,

[Whitney Nash]

Hello @Andrea Smith

If the farmland has been 'held for investment or use in a trade or business for a period of time' you can 1031 the funds into 'like-kind real property' if it will be held the same way. Multifamily homes qualify as like-kind to the land. 

You would still want to talk to a QI in detail about your situation and what you are trying to accomplish to confirm that it qualifies for a 1031 exchange and that it is feasible.