I know the general principals and rules regarding using a 1031 exchange to buy investment properties. But here are my questions. We sell in a second home community in NC. Most of what we sell is home sites, only rarely do we have a spec home to sell. Does a buyer have to buy the home and lot as a package and complete building in a certain time frame to use the tax exemption, or can they buy raw land. Also, is there a resource out their to market to buyers using 1031 exchanges other than realtors.
You need to contact a company that does 1031’s in your state with these questions. Call a couple of title insurance companies in your town and tell them you are a buyer and need help. They should refer you to a company that they trust.
You need very specific answers to those questions.
As a general rule, any investment property is eligible to participate in a 1031 exchange. The investment property can be vacant land or developed property – does not matter as long as the property is used for an investment purpose.
If your buyers intend to develop the land for their second home or vacation home, then that would be for a personal use and would not qualify to participate in a 1031 exchange.