1031 Exchanges International
Often the question is asked, “Can I do an exchange on international property”. The answer is like John McCain’s underwear. It depends. The 1031 exchange (named after section 1031 of the revenue code) is also called a “like kind exchange”. Real estate has a very special place in this code because all domestic real estate is considered like kind. You can trade a farm for an apartment building. You can even trade for a leasehold interest.
Someone trading livestock or equipment is held to much closer standards. You cannot trade a bull for a cow or even a beef bull for a dairy bull. You cannot trade a tractor for a printing press. I apologize for diverting so far off course before answering the original question.
You can trade any domestic business use real estate for any other domestic business use real estate. This would exclude a property used as a personal residence. You may trade any foreign business use real estate for any other foreign business use real estate; but you cannot change domestic for foreign or vice-a-versa.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
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