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Mobile Home Parks
I own a small accounting firm here in Suwanee GA and my partner and I met with a client today that has a mobile home park in KY that he wants to sell in a 1031 exchange for property down here in GA. He moved to Suwanee and is retired and wants to roll his gain (probably $400-$500K) into a new investment property(ies). End goal for him is to have that gain wiped out through step-up in basis upon transfer to his daughters. Currently the park is owned by a partnership between he and his wife.
We don't have much experience with 1031 exchanges so we are trying to help him with the research on what his options are and what the best strategy will be for him given his long-term goals.
Can anyone recommend a good company that handles these exchanges? Any advice on doing a 1031 exchange with a mobile home park owned by a partnership?
Stephen Murray
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I think the very first question that I would need answered is whether the RV park consist of land only or is it something that consists of land and the actual RVs themselves as well. If it is the latter, there has to be an allocation involved and if it is the former, there are no issues as it qualifies since it is solely the land ( Real property ) dad is being exchanged. Finally, just remember that the taxpayer receives the benefit of the exchange so the taxpayer has to be both the selling entity and a buying entity and cannot be altered.
I apologize for any grammatical errors as I am dictating this while driving