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Can you use a 1031 Exchange to purchase foreign property

Last post 09-23-2008 11:22 AM by Bill Exeter. 1 replies.
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  • 09-23-2008 2:36 AM

    Can you use a 1031 Exchange to purchase foreign property

    Can you use a 1031 Exchange to purchase a foreign property (which is held using a California TIC structure)?  We are selling a fractional apartment in Paris that is held first by an SCI (french real estate vehicle used to own a property with multiple, unrelated owners) and then by a California TIC.  I've had several inquiries about using a 1031 exchange when purchasing.  First of all, is this even a possibility?  Then what types of exchanges would qualify?

    • Post Points: 5
  • 09-23-2008 11:22 AM In reply to

    1031 Exchanges of Domestic (U.S. Property) for Non-Domestic (Foreign) Real Estate

    No, 1031 exchanges require that all of the properties involved in the 1031 exchange must be like-kind to each other.  Like-kind means that all of the properties must be domestic (U.S. property) or they must all be non-domestic (foreign properties).  You can not 1031 exchange between domestic and non-domestic properties. 

    William L. Exeter
    President and Chief Executive Officer

    EXETER 1031 Exchange Services, LLC
    A Qualified Intermediary (Accommodator) for 1031 Exchanges

    EXETER Fiduciary Services, LLC
    A Private Professional Fiduciary Services Company

    http://www.exeter1031.com
    http://www.exeterdst.com
    • Post Points: 1
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