Can I 1031 my earnings from a partner deal?

Question

I have a question about the 1031 process. If I have a partner, and we buy a lot and build a house out of pocket, then we sell and clear $100k each, can I 1031 my earnings into a local 4-plex? I don't really need the cash, so avoiding taxes for a few year's worth of transactions would be ideal before making any draws. When I read through the guidelines, it said that the owner and taxpayer had to be the same, and I didn't see any provisions to complete what I'm asking.

Bob B. · Answer

Ok Alex.. I'll take...intent for $100.

Dave Foster · Answer

Ding ding ding. Winner winner chicken dinner. AC did not purchase that property with the intent of holding for productive use. His primary intent was resale. So that lot and construction are inventory and 1031 not available.

And now back to watching paint dry during the quarantine.

Dave Foster · Answer

Chirp Chirp Chirp.... Hear that @Bob B.? It's the sound of "Account closed" eagerly awaiting some answers :). Let's play a game. I say that "AC" cannot do the exchange. But not for any reason he's thinking about.

Now you tell me why "AC" cannot do the exchange. (Queue the Jeopardy theme).

Bob B. · Answer

@Dave Foster will be along shortly and explain the 1031 process

Can I 1031 my earnings from a partner deal?

Can I 1031 my earnings from a partner deal?

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