1031 Exchange

[Raju420]

Georgia.

My question is that can i do a 1031 exchange for example, i have a service business(not a real estate property) which i am selling it for $700,000 and buying a commercial real esatate property for $250,000. Is it possible to do a 1031 exchange, thank you.

 

[Snipes5]

1031 Exchange is to exchange one income producing property for another. This is generally determined to be some type of real estate.

Further, if you are exchanging something worth $700,000 for something worth $250,000, that isn't going to help you. You would normally want to exchange for something of greater value.

If you're willing to take that much of a loss on your business, you don't need to do an exchange.

See a tax professional.

Snipes

 

[Raju420]

What do u mean by take a loss on my business?

 

[Snipes5]

If you have something worth $700,000 and exchange it for something worth $250,000, that's a $450,000 loss.

Snipes