Recently we helped a local real estate broker facilitate a 1031 exchange for their client. The client was selling am up/down duplex in Minneapolis, with the intention of rolling the proceeds into a fourplex property with a like-kind exchange. Here are some questions relating to this particular 1031 exchange.
Commercial Plus Residential Space
Is there a problem with one of the properties having commercial rental space as well as residential? One place in particular is three apartments with 2800 sq ft of commercial space below.
The replacement property must be held for investment or business purposes and may be residential or commercial rentals (or a combination of both).
Rolling Proceeds into More than One Property
Is it possible to roll the sales proceeds from the relinquished property into more than one replacement property?
You are allowed to purchase multiple replacement properties (provided that they are designated / Identified in writing within 45 days of the closing of the relinquished property).
- 1031 Hotline: If you have questions about your or your client's 1031 exchange, feel free to call me at 612-643-1031.
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