Saturday, August 21, 2004

1031 and NEW Ways to Build 

IRS Approves More Ways
To Use 1031 Exchanges

An article in the Wall Street Journal by Staff Reporter Ray A. Smith sites recent rulings by the Internal Revenue Service on 1031 exchanges that " could pave the way for more investors to conduct such transactions using property being built on vacant land.”

In the past, it has been uncertain about how the IRS views 1031 transactions in which you, the investor, choose to use the proceeds from a property sale to build on vacant land. Could construction on land be considered replacement property? Investors wondered.

But the two recent rulings say these kinds of transactions CAN qualify as 1031 exchanges.

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