I had an interesting question pop up today and wanted to get opinions on a 1031 exchange. I've never done one and dont know the process, so curious.
Scenario: Person owns mineral rights and may be selling soon. They are hoping to pay off their remaining primary home mortgage with the money from selling the minerals.
Question: Can they 1031 the revenue from selling minerals into paying off their mortgage and avoid taxes? If so, are there any entities or hoops to jump through, such as putting revenue into an LLC and "selling the home" to the LLC?
Scenario: Person owns mineral rights and may be selling soon. They are hoping to pay off their remaining primary home mortgage with the money from selling the minerals.
Question: Can they 1031 the revenue from selling minerals into paying off their mortgage and avoid taxes? If so, are there any entities or hoops to jump through, such as putting revenue into an LLC and "selling the home" to the LLC?