Q. May I sell property in Florida and purchase replacement property in Connecticut?A. Yes. All real estate located within the United States and its territories are considered “like-kind” for the purposes of IRC Section 1031.
Q. May I take some money from the sale for personal use?A. Yes. However, any money not reinvested in replacement property will be taxed as a capital gain.
Q. If I co-own property with someone else as "tenant-in-common" must both proceed with the exchange?A. No. You can go your separate ways and reinvest your proportionate share of the sale proceeds into replacement property.
Q. May I use a business property for personal use?A. Yes, for a two week period or 10% of the rental use per year, whichever is greater. Time spent on the property for business purposes (i.e. maintenance, repairs, marketing, management, etc.) is not considered personal use.
Q. May I accept a "note" from the buyer of my relinquished property?A. Yes, however the "note" must be used either directly toward purchase, or converted to cash prior to purchase, so all assets realized from the sale are used for the purchase of replacement property.
Q. May I sell one property and purchase several, or vice-versa?A. Yes. Multiple properties can be combined within the exchange process as long as the timing parameters are met.