Buying with a 1031 property from a 1031 sale

Buying with a 1031 property from a 1031 sale

Contractor · Oakland, CA · Member since 2019 · 9 posts · 3 votes

So the title is a little confusing . . . basically I am wondering if both parties of a transaction can perform a 1031.

Here's the situation:

I bought a SFR rental property a few years back and am now looking to sell and invest in a multifamily property. I'd like to use a 1031 exchange to roll the equity from the SFR to the multifamily.

The multifamily I'm looking at state the current owner also wants to do a 1031 exchange.

Anyone have some experience in this situation? 

Can both parties use the same 1031 administrator to facility the exchange?

Any updates on the 1031 exchange in the last tax update?

0Reply
36 views

3 Replies

Jump to latestLatest
  • Natalie KolodijBusiness Member
    Moderator
    Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
    7y

    Both people can do 1031 exchanges- they're two separate tax transactions for each person. 

    I'm not sure if a separate intermediary is required that's a good question- @Dave Foster is the man to ask

  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
    7y

    @Garry Burns,  perfectly acceptable. Doing a double this week. A realtor referred his client and we started an exchange for the client.  Now the client wants to buy a replacement from the realtor so the realtor will start an exchange with that sale.

    Sometimes one realtor does both.  That’s very streamlined and efficient if the parties work together.  Sometimes they don’t know each other and each brings their own Qi. It works either way.

    No changes with regard to real estate 1031s. All the same rules in place.

    The 1031 Investor5140 Reviews
  • Contractor · Oakland, CA · Member since 2019 · 9 posts · 3 votes
    7y

    Thanks for the replies!

    Definitely helps!

Join the conversationCreate a free account to reply, vote on answers and follow this thread.