Posted by John Merchant on July 23, 2010 at 14:58:11:
A 1031 exchange of the TH for another income property might be possible here if the TH is converted into an income property before selling.
With 1031, sale of property A is not taxable if all proceeds are kept by 1031 facilitator then applied to purchase of property B.
Sec.1031 rules will state how long the TH would have had to be a rent property in order for it to qualify as a 1031 prospect.
I’d suggest you give a call to one or two 1031 companies such as Starker Exchange in WA State and talk to them about this.
If you call Starker, ask for JD Stroud, one of the head people for that co. in WA State and she’ll quickly tell you what would be needed. She’s been in this business for a long time and knows the rules and procedures.