I own a rental that I am due to close on and I sold it on a lease purchase. I am purchasing a second home for retirement (about 4 years away) and in the meantime plan to rent it to my daughter at market rent. Can this be set up as a 1031 exchange?
If you have already closed on your property, it is too late to do a 1031 exchange, as you would have had to obtain a qualified intermediary to handle the exchange prior to close.
Since you are holding the note on the sale, there is still a way to do a 1031 exchange if you haven’t closed escro. It also involves the QI and placing the note with them and buying it back at face value.
If it’s not too late you can call me at 760-917-0858 to discuss further.
Paula Straub
760-917-0858