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CAN YOU BE ALLOWED TO BUY A PROPERTY OUTSIDE UNITED STATES ON IRS 1031 EXCHANGE

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Answers (1)
David Collins
Glentyde Capital Advisors, Inc.
CEO / Owner
Mecklenburg County, NC

If you're talking about real property, Code Sec. 1031 (h)(1) specifies that for purposes of 1031 swaps,

"Real property located in the United States and real property located outside the United States are not property of a like kind."

...and of course, being of "like kind" is one of the basic requirements to qualify under 1031. There's a similar prohibition for personal property, but it's keyed to where the property is "predominately used", rather than physical location.

Sorry, mon ami, not what you probably wanted to hear. Best of luck.

Jun 18, 2009