1031 Exchange for Sold Foreign Property

4 Replies

I sold an apartment in another country(India)  three months back. Can i repatriate that money and do a 1031 exchange to acquire a multi-family or single family rental. 

Any suggestion for an expert Tax consultancy /CPA  for helping in this matter?. 

- Sridhar

@Sridhar Sannidhi Was that property in India your primary residence? If so, it would be excluded.

Also, I believe you only have 45 days to identify a second property. So if three months have passed, you may have missed your opportunity this time. Speak to an expert to make sure.

Likewise, you may only exchange a foreign property with another foreign property, and not a property within the US.

You can try www.madison1031.com/ for more specifics. I have dealt with them, they are extremely knowledgeable, and amazing customer service.

@Sridhar Sannidhi , There are a couple issues with your scenario.

1. You must have the qualified intermediary in place prior to the closing of the sale.  Once you have completed the sale you cannot start a 1031 on that sale.

2. 1031 must be an exchange of US property for US property (or a few select US territories) or Foreign property for foreign property.  So you wouldn't be able to repatriate the funds into the US under 1031 anyway.

Thank You @Yonah Weiss and @Dave Foster. I will pay taxes for this time. Next time i will plan properly.

Hello Sridhar, 

I'm selling an investment condo in the Czech Republic and was hoping to bring that money home to the U.S. to buy an investment condo in the U.S., but the rules don't allow exchanging a foreign property for a U.S. one.  Seems counterproductive from the U.S. investment point of view, but I guess there's nothing I can do except write a big check to the IRS for the capital gain and start over with what's leftover.  

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