How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask PhillipsEsq Your Own Question
PhillipsEsq, Attorney-at-Law
Category: CA Real Estate
Satisfied Customers: 19632
Experience:  B.A.; M.B.A.; J.D.
Type Your CA Real Estate Question Here...
PhillipsEsq is online now
A new question is answered every 9 seconds

I want to 1031 multifamily building farm land / ranch

Customer Question

I want to 1031 multifamily building for a farm land / ranch around Santa Yanez. The plan is to do extended stay rentals or weekend rentals at the ranch. Will this qualify as likewise income property for 1031 exchange? Zone Description: Agricultural, Residential Agriculture.
Submitted: 1 year ago.
Category: CA Real Estate
Expert:  PhillipsEsq replied 1 year ago.
No, it would not be considered as like-kind exchange under 26 U.S.C. Section 1032 since a multi-family building is being exchange for a land with no improvements on the land. Pursuant to IRS regulations, both properties intended for 1031 exchange must be similar enough to qualify as "like-kind." Like-kind property is property of the same nature, character or class. Quality or grade does not matter. Improvements that are conveyed without land are not of like kind to land. Kindly give a positive rating to my response so that I can receive credit for responding to your post. There is no additional cost to you for doing this. Thank you for your cooperation.