1031 exchange:
1031 Exchange Outside US

Dear 1031x: Can I sell my property located in the USA, using a 1031 exchange - to buy a property outside the USA? An International Property in Denmark, for example. (same price).

Dear E:

The code specifically states that real property located outside the US is not like kind to property within the US. This is easy to understand as once the gain is deferred into a foreign property the IRS loses track of it altogether. We have done some 1031x transactions for US taxpayers selling in one foreign country and buying is another. Finally, you could keep your US property, take cash in the form of a mortgage and use that cash to buy outside the US.

Sincerely,
Steve Hickox
Attorney / President

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