Properties Not Allowed Benefiting From a 1031 Exchange Qualified
Sunday, February 24th, 2008Generally speaking, you cannot exchange all sorts of properties under the protection of Section 1031 of the Internal Revenue Code (26 U.S.C. § 1031). Personal residences cannot be afforded the protection of a 1031 exchange qualified . Other properties that cannot be afforded such protection include properties held for immediate resale, bonds, stocks, notes, all sorts of securities, certifications of beneficial interest, certificates of trust, other such evidences of indebtedness, inventories, and partnership stakes. As one might realize, the concept of a 1031 exchange qualified is especially important for those who have substantial investments in real properties. There are also quite a number of restrictions that one must take note of.