Posted by Bill Bronchick on August 27, 2004 at 11:36:59:
A lease/option is not a sale, until the option is exercised and sale completed. So, if you lease a property with option to buy, then sell your other property, you can exercise your option within the appropriate time period to complete the exchange.
Lease option to 1031 - Posted by Gene
Posted by Gene on August 26, 2004 at 17:38:26:
I am looking at buying an investment property and I need (want) to sell another rental property to buy it. However the seller will not take this contingency.
My solution is to Lease the property from him with a option to buy for one year. This will give me time to sell my other rental property. (he has said this would be ok for him)
My question is…at the sale of the rental property can I apply that money twards the purchase of the lease optioned property using a 1031?
Thanks
Gene
Reverse 1031 Exchange - Posted by William L Exeter
Posted by William L Exeter on August 27, 2004 at 16:30:54:
You can also use the reverse 1031 exchange, which allows you to acquire your replacement property first and then sell your relinquished property. The reverse 1031 exchange is more complex and costly as far as the Accommodator is concerned, but it does allow you to accomplish what you are trying to do. I would be happy to email an article on reverse 1031 exchange transactions to you if you would like.