'Trading' real estate beyond 1031 180 rule

[swittie]

What is the name of your state?What is the name of your state? AL

>Situation: currently own a townhouse (a PUD, not a condo) in a beachfront complex in Alabama. Ivan did a number on it. It is 23 yrs old and many are left with a tough choice. Developers are making proposals to 'trade' for a new unit (this would be a condo) in a redevelopment on our existing property. This is beachfront and premium with alot of footage.
> Construction time would be 18-24 months, well beyond the 180day 1031 Like/Kind rules. However, with the trade up, no 'money' would be exchanged to trigger a taxable event. If an owner deems to 'sell' after the trade is complete (i.e. take possession), then it is clear this would be a capital gains situation. Unsure what the 'basis' would be because we really don't have appraisals, just real estate market 'comps'.

Any advice or directional information would be appreciated.

 

[Snipes5]

Is this a rental property or personal residence?

If it is a personal residence, 1031 does not apply. It would appear you have a casualty loss, which is deductible on Schedule A.

If it is a rental property, your situation is complicated, and you should speak to a 1031 Facilitator at once. This isn't something that can be adequately explained via a message board.

There are likely instances in which a waiver of time can be obtained, but you really need to speak to a competent facilitator about this. Get references, and CHECK THEM.

Snipes