Assumingly, you would be the seller. There is nothing unusual here, the sale is deemed to have taken place on the date the T/B closes. Then your 45 day and 180 day rules start.
If you should be in the middle of a sandwich lease, SOL. You were not the seller, even with a pass thru or double close.
Quote:
It is not cut and dried here. Not all lease option transactions are eligible to participate in a 1031 exchange even if you are the seller.
Now you really lost me here, Kid. Being lease optioned has nothing to do with the sale. It is completely irrelevant. An option was exercised. End of this part.
Then a sale took place. As a seller, you can opt in for a 1031 replacement property. Sale date is date of closing.
Not if the sale of the property is a dealer disposition. If the property is dealer realty (inventory) to begin with, then the property can not participate in a 1031 even if you use a lease option to facilitate the sale.
As I said, it is not cut and dried. There are circumstances we have to consider before we can give a definitive response. Whether a 1031 could apply depends upon whether or not CaptainJack is flipping the property. He has not told us yet.
For now, all we can say for sure in response to the question is IT DEPENDS
If you are unsure about this, consult your tax advisor for specific details.[ Edited by NewKidInTown3 on Date 12/14/2007 ]
Can you give more detail?
[addsig]
Are you the tenant/buyer or the landlord/seller, or, the middleman in a sandwich lease option?
Is the property the relinquished property or the replacement property in the exchange?
Assumingly, you would be the seller. There is nothing unusual here, the sale is deemed to have taken place on the date the T/B closes. Then your 45 day and 180 day rules start.
If you should be in the middle of a sandwich lease, SOL. You were not the seller, even with a pass thru or double close.
A T/B obviously has no 1031 rights.
[ Edited by tbird56 on Date 12/13/2007 ]
Quote:
It is not cut and dried here. Not all lease option transactions are eligible to participate in a 1031 exchange even if you are the seller.
Now you really lost me here, Kid. Being lease optioned has nothing to do with the sale. It is completely irrelevant. An option was exercised. End of this part.
Then a sale took place. As a seller, you can opt in for a 1031 replacement property. Sale date is date of closing.
Not if the sale of the property is a dealer disposition. If the property is dealer realty (inventory) to begin with, then the property can not participate in a 1031 even if you use a lease option to facilitate the sale.
As I said, it is not cut and dried. There are circumstances we have to consider before we can give a definitive response. Whether a 1031 could apply depends upon whether or not CaptainJack is flipping the property. He has not told us yet.
For now, all we can say for sure in response to the question is IT DEPENDS
If you are unsure about this, consult your tax advisor for specific details.[ Edited by NewKidInTown3 on Date 12/14/2007 ]