1031 Exchanges and Capital Gains Tax

Friday, March 07, 2008

dealer or investor 1031 eligible

Dear 1031x.com: 1. Can a real estate "dealer" be involved in a 1031 Exchange?
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 2. Does the amount of time  spent in sales activities of properties  influence whether a person is a real estate "investor" or a real estate "dealer"?
Dear D:  A dealer in real estate must separate his two activities with regard to each property.  These are properties held in inventory or held for immediate resale (not 1031 eligible)  these are my properties held for investment (1031 eligible)  You can be both a dealer and an investor.  Sincerely,

Steve Hickox
Attorney / President


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