Will leasehold property qualif
Can I buy a leasehold interest with my exchange?
Yes.
years of more, or vice versa, is an exchange of “like-kind” property.
Reg
Unexercised option periods are included in meeting the 30-year
requirement. However, if the lease provides for optional renewal periods, these
periods can be included in determining whether the leasehold has 30 years or
more remaining.
An exchange of fee title for a leasehold with a remaining term of 30§1.1031(a)-1(c).For example:
periods of 10 years is considered to be “like-kind” property since the taxpayer
had the right to use the property for up to 40 years.
A lease with an initial term of 10 years and 3 optional renewalA leasehold interest with a remaining of 30 years or more is considered
“like-kind” property to a fee interest. If a leasehold has a term of less than 30
years, it is not treated as a qualifying 1031 property.
As with any exchange transaction, the investor is encouraged to contact a
Granite Exchange Consultant at 877-937-1031 to discuss their specific
situation.
National Headquarters:
877-937-1031
www.ges1031.com
Each exchange transaction is unique and Granite Exchange Services, Inc. does not provide tax, legal or investment advice. Member: FEANet Leasehold Interest
Information provided by:
Granite Exchange Services, Inc.
877-937-1031
● ges1031.comSpecializing in:
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