Can I Do This?
I am new here, a friend suggested I join this forum, I’m glad I found it, I’m sure I’ll be here often. I have a 1031 exchange question, can I do this? I own two adjacent properties, one is a 1031 exchange property (I’ve owned/rented it for two and a half years) the other is not 1031 exchange property.
I have determined the most profitable plan is to redevelop these properties into two condos, removing the existing structures, combine the property into one property, building two new spec condos.(Combining is required to build two condos, two houses are not allowed due to lot size and one house is not economically feasible).
The costs will be separated, using actual construction cost for each condo. The condos will be two separate structures (not attached) and have different number and street addresses.
My plan is to acquire a new 1031 exchange rental property with the sale proceeds of my current 1031 property in a proper 1031 exchange procedure. Will this transaction jeopardize my current 1031 exchange status?