Posted by John Merchant on June 28, 2004 at 16:41:35:
I’m not buying it.
Talked this AM to a couple of my 1030 facilitator buddies, both very experienced and knowledgable guys, and they told me NO to 1031 Exc. of RE for Pers. Prop or vice versa.
And ANY kind of RE for ANY kind of RE. Could be rental for bare land, or office bldg for bare land, etc., etc.
But absolutely no PP for RE or RE for PP.
1031 exchange for boat?? - Posted by Hope
Posted by Hope on May 08, 2004 at 17:38:38:
I was wondering if we could do a 1031 exchange for a rental home and buy a boat with it? We would dock the boat in our yard and rent it out. I do remember reading soemthing about this being ok, but I have searched alot of sites dealing with 1031 exchanges and havent been able to find this info. Does anybody know what the rules are, and if this is acceptable for a 1031 exchange?
Re: 1031 exchange for boat?? - Posted by William L. Exeter
Posted by William L. Exeter on May 15, 2004 at 16:05:56:
The answer is no. The requirement for a successful 1031 exchange is that you exchange for like kind replacement property. The sale of a real estate interest and the acquisition of a boat would not qualify as like kind replacement property and would therefore not qualify for 1031 exchange treatment.
I would be happy to answer any other questions that you might have. Please feel free to contact me.
Re: 1031 exchange for boat?? - Posted by John Merchant
Posted by John Merchant on May 12, 2004 at 21:08:39:
Well let’s see now…is a boat “like kind”? For a RE property?
Don’t think the IRS would buy that.
Any kind of RE is “like kind” for any other kind of RE, but must be RE for RE.
Seriously too, 1031 expert companies, of which you’ll find lots in your yellow pages, love to answer questions like yours and a simple phone call would get you lots of quick, free, info.
Re: 1031 exchange for boat?? - Posted by Dan R.
Posted by Dan R. on July 04, 2004 at 10:35:20:
I have a slightly differet situation in that the boat I own is generating revenue in a time share charter business. The boat is fully equipped (heat, running water, sewage holding tank, freezer, etc) and could be considered a “second home”. I’d like to exchange it for “land based” rental property. Do you if this would qualify?
Re: 1031 exchange for boat?? - Posted by Roger Garay E.A.
Posted by Roger Garay E.A. on June 27, 2004 at 22:22:36:
“Like-kind” does NOT mean R.E. for R.E., it means “rental” for “rental.” If the boat is “liveaboard capable” (has a head, a galley and sleeping berths) and is held out for “bareboat charter” you are home free because you are renting out residential space in both cases. If your boat is NOT “liveaboard” capable such as a speedboat or fishing skif (if you are keeping it in your yard that is likely the case), then it would NOT qualify because your “rental” activity is one of personal property which is a Schedule C rather than a Schedule E activity.
Re: 1031 exchange for boat?? - Posted by William L Exeter
Posted by William L Exeter on July 04, 2004 at 15:42:34:
The boat is certainly rental property due to the fact that it generates income and could be exchanged for like-kind property. In most circumstances with very few exceptions state law will classify boats as personal property and therefore you could exchange your rental property (boat) for a like kind rental property (another boat with similar or related uses), but not for real property. Real property and personal property are not considered to be of like kind. The definition of real property versus personal property is defined by each states laws, so always consult with an attorney in your state to determine whether the asset you are looking to sell is classified as personal or real property.