PFG said:
Bumping this discussion.
I own some Ag exempt property that I held for 3.5 years. Intended to build a home, never did.
I'm now listing that acerage, and buying a larger, more expensive tract of Ag exempt propert.
Can I use the 1031 procedures? Have a few more questions, but let's start there.
PFG,
1031 exchanges are for like kind property that is NOT owner occupied. People sometime believe "like kind" means residential for residential or commercial for commercial, but that is not the case. Like kind is simply real estate for real estate. In other words, you can't sell land and buy stocks, bonds, etc.
As long as you didn't live on the land you are selling and don't intend to live on the land you are buying, you should be fine
One other thing is that suppose you were selling an apartment complex for a million. You can buy more than one separate, non-contiguous property, e.g. a strip center and two rent houses.
Definitely find you a good qualified intermediary and let he or she guide you.
My information comes from being an escrow officer that has closed many 1031's but I certainly don't claim to know all of the intricacies.