Posted by John Merchant on August 05, 2003 at 12:32:22:
You can have your answers in minutes. Just go to your Yellow Pages, or online, and call one or two of the 1031 companies. Those folks deal in these things 7x24 and will give you all the info you need, absolutely free, in hopes you will let them be the facilitator.
In fact, your current 1031 facilitator sounds pretty weak and inadequate if he/she/it can’t immediately answer your questions and concerns.
Is this legitimate replacement property? - Posted by Louis Nero
Posted by Louis Nero on August 05, 2003 at 10:32:25:
Here’s a situation that an LLC for which I prepare income tax returns is facing:
ABC, LLC recently sold vacant land that it held for investment for a huge gain. The proceeds of the sale are being held by a qualified intermediary so that they can obtain a replacement property and defer paying capital gains tax. The partners have been approached by a real estate company that would like to start a joint venture with them, with the intention of purchasing a vacant piece of property on which they would put up condos about a year or two down the road.
Is it possible for ABC, LLC to obtain this vacant land as replacement property and contribute it to a joint venture with this real estate company? Is there a minimum holding period for ABC, LLC to hold the land before contributing it to such a joint venture? I assume that the IRS would frown on ABC, LLC replacing real property with a partnership interest which is considered personal property.
Any help is greatly appreciated. Thanks.