Q:

Subject: 1031 Exchange Question

 Kerry

You have been recommended to me as someone who might have a definitive answer to a 1031 question.

 

Here is the situation:  In March of 2004 an LLC of which I am the single member purchased the Rivercliff Golf Course in Bull Shoals for $925,000.  I am in the process of selling a piece of rental property in California for $1.4 M that is in my name as an individual.

 

Is there any way I can use the purchase of the golf course as part of a 1031 exchange involving the property in California.

 

If you think there is a way I could do this please contact me and we can make the necessary arrangements.  If you don’t think this can be done I would appreciate a short reply letting me know that.

A:

What you are proposing is not possible.  You would have to replace the California property with new property, not something that you acquired more than a year earlier.

Kerry Kerstetter