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Q: Real Estate ( Answered 3 out of 5 stars,   0 Comments )
Subject: Real Estate
Category: Business and Money > Finance
Asked by: realestatejunkie-ga
List Price: $4.00
Posted: 08 May 2004 06:43 PDT
Expires: 07 Jun 2004 06:43 PDT
Question ID: 343154
Are 1031 like-kind exchanges allowed for cooperative apartments?
Subject: Re: Real Estate
Answered By: taxmama-ga on 09 May 2004 07:23 PDT
Rated:3 out of 5 stars
Dear Junkie,

Probably, if you exchange one co-op unit for another. 

The question that would need to be researched is 
can you exchange a co-op unit for another kind of 
property, like a house, or a condo. 

IRC Sec 1031 refers to exchanges of like-kind property. 
I have seem some arguments about whether it will work 
allowing you to exchange simply one kind of real estate
for another (i.e. land for land and a building).

IRS's summary,,id=98491,00.html

The tax code - section 1031

The other part of that question is, when determining what
is like-kind property - is a co-op 'real estate'?
Or is it an interest in a partnership that owns a building? 
If the title to co-op unit is as a partnership interest,
then, no, you cannot do a 1031 exchange.

Incidentally, why do you want to do the exchange?
If it was a personal residence, the first $250,000 
($500,000 for married, joint, or two owners) of the
gain isn't taxable anyway. No need for the complications
or expense of a 1031 exchange.

If you need in depth research, please re-post your
question with the idea that it will take someone about
at least an hour to pull cases for you. 

I hope this gives you a good starting point for your decision. 

Best wishes,

Your TaxMama-ga
realestatejunkie-ga rated this answer:3 out of 5 stars

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