1031 exchange lease option extend time

Dear 1031x,

 

I currently own an aircraft that I would like to sell and currently have an interested party.  I have recently made an offer on a contract for a new aircraft that will deliver new from the manufacturer in about 8 months.  I would like to do a 1031 exchange, but the period of time from the sell of the current aircraft and the delivery of the new aircraft will exceed the 180 day rule.  Would leasing out my current aircraft with an option for the buyer to purchase once I'm within the 180 day requirement preserve the ability to do a 1031?

 

Thanks,

Dear B:  Using a lease option is the right solution here.  Remember make it a true lease option and not is disguised sale.  S.

Steve Hickox
Attorney / President

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