Eligible for 1031 ?

I own a deeded quarter share of a studio unit that I am planning to sell. I have owned it since mid-March 2012. It will likely sell with over 200% profit. Would it be eligible for a 1031 exchange ?

Thanks

Is it a rental or a vacation home?

IP

Always rented, no personal use.

I don’t see why not, though I am for sure no pro. I found this to be an interesting article: https://www.investopedia.com/financial-edge/0110/10-things-t…

I was surprised to see that even vacation homes can be 1031-ed. I just started looking into it, and very much a novice here.

Good luck,

IP

Always rented, no personal use.

As an investment property, it would be eligible for a 1031 exchange. That said - I would caution that in the current market, purchasing the replacement property is probably the more difficult part of a 1031. I would want to be sure to have a replacement lined up before listing the current property.

AJ

That said - I would caution that in the current market, purchasing the replacement property is probably the more difficult part of a 1031. I would want to be sure to have a replacement lined up before listing the current property.

AJ

With it being such a sellers market where we are, I was most tempted by a “Reverse Exchange”:

Reverse Exchange
It’s also possible to buy the replacement property before selling the old one and still qualify for a 1031 exchange. In this case, the same 45- and 180-day time windows apply.1

To qualify, you must transfer the new property to an exchange accommodation titleholder, identify a property for exchange within 45 days, and then complete the transaction within 180 days after the replacement property was bought.

https://www.investopedia.com/financial-edge/0110/10-things-t…

IP

As an investment property, it would be eligible for a 1031 exchange. That said - I would caution that in the current market, purchasing the replacement property is probably the more difficult part of a 1031. I would want to be sure to have a replacement lined up before listing the current property.

Just checking on a possible strategy - likely to sell and plan to just spend it. It is in the hottest market I have seen - I have owned other properties there and am watching utter craziness. My goal is to simplify at this point and this property served its purpose.

Thanks !