Furthermore, if I grant a 15 year term easement (as opposed to one in perpetuity) does that qualify? 30 year? What is the least number of years I can grant an easement for in order for the proceeds of the transaction to qualify for capital gains treatment or for a 1031?
2006-07-28 11:48:08 · 2 answers · asked by BugsySkybone 3 in Business & Finance ➔ Renting & Real Estate
An easement for less than 30 years might still be considered a fee interested and eligible for a real property 1031. This really comes down to state law as opposed to federal law. Generally, if a 30 years term is given, it should be considered real property, but again, you may go less considering your state's law. A perpetual easement should easily qualify. Keep in mind, the less restrictive your easement, the easier it may qualify.
2006-08-01 09:54:32 · answer #1 · answered by Anonymous · 0⤊ 0⤋
No, this would possibly not artwork. 1031 exchanges are for like-type INVESTMENTS basically. as quickly as you exchange between the investments right into a customary place of residing (which isn't an investment) the 1031 bus will shift into opposite and run over you for the favorable tax therapy you gained interior the previous.
2016-11-03 05:32:42 · answer #2 · answered by ? 4 · 0⤊ 0⤋