There are many questions surrounding property in a 1031 exchange or real estate. In this article, we are going to discuss whether or not you can combine two properties into one larger property in a 1031 exchange.
Combining Properties in a 1031 Exchange
The short answer is, yes – you can combine two properties into one larger property in a legitimate 1031 exchange. The real question is whether or not the one replacement property is big enough to match the two relinquished properties.
Remember, in a 1031 exchange, your replacement property has to be equal to or greater than your relinquished property in value, equity, and debt. So if that replacement property is large enough, you can certainly exchange the two relinquished properties into it.
Qualified Intermediaries in Minnesota
At CPEC1031, our Minnesota qualified intermediaries have extensive experience facilitating 1031 exchanges across the United States. Our team can walk you through the entire 1031 process and help prepare all your documents in advance of closing. If you have any questions about the 1031 exchange process or how it may be beneficial to your situation, don’t’ hesitate to reach out to our like-kind exchange professionals today. You can find us at our primary offices located in downtown Minneapolis.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
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