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Section 1031 like kind exchanges are for business property.
Business property or investment property - not interests in a business
So, you could do a 1031 exchange on a rental house, or a vehicle but not an interest in your business.
You can read about the requirements of a like kind exchange, HERE.
It specifically states that partnership interests are not covered under section 1031.
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No. You would have to trade one rental property for another rental property
The transaction you are entering into does not qualify for like kind exchange treatment.
Section 1031 would be like trading one car for another car; one rental property for another rental property, etc
Interests in Corporations do not qualify for this treatment.
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That's what I am asking, this is a mobile home park (rentals) I want to take my money that I get off the sale of my half, and reinvest into other rental property.
Do you own the assets, or does the corporation?
It would also be set up as a corporation
No, you cannot do a 1031 exchange on your interest in a corporation.
Do you know of any other way to defer the tax hit that we will be taking?
If you personally owned the assets, and swapped those assets for assets of a like kind you would be able to do a 1031 exchange. But not corporate interest
Unfortunately, there's little that could be done, unless you had other business losses
What is the difference in corporate "interest" and profit?
Corporate interest is your ownership interest and profit is what you make after expenses
So, would it be better not to sell out our half of the company and make the buyer open up under another corporation?
There's no way to do a 1031 exchange in this type of transaction.
Ok then, I appreciate the help
You're welcome. Is there anything else I can assist you with today?
No, that's it
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