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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2308
Experience:  Certified Public Accountant
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Can I 1031 exchange a we own for a business that doesn't

Customer Question

Can I 1031 exchange a triplex we own for a business that doesn't have real estate or is can only exchange a triplex for other real estate? With regard to the portion of the 1031 around having more mortgage liability, can this only be a real estate mortgage or can this be an SBA loan for a business? We currently have $50k in cashlow from our triplex and we would ultimately purchase an existing business with greater cashflow or a combination of a business with cashflow and a vacation rental in Palm Springs.
Submitted: 12 months ago.
Category: Tax
Expert:  Mark Taylor replied 12 months ago.

Hi, my name is***** will be happy to help you with your questions. For a 1031 exchange you would need to exchange the property for like kind property. So if you constructed a 1031 exchange with the triplex you would need to buy another residential property.