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1031 farmland into small multifamily
Hello!
Can I sell farmland and put it into townhomes I plan to rent out? For example, enough land to build 28 townhomes...
Thanks,
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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.