mixed use 1031?

Technical topics regarding tax preparation.
#1
Posts:
140
Joined:
13-Jun-2019 3:44pm
Location:
CA
Client owns a property with two buildings on it.

First building is rented out to a commercial client.

Second building is mostly used as client's residence, but a portion of that space is rented out to same commercial client.

Client estimates about 60% of property is used for biz, 40% is residential.

If sold, client would claim personal residence exclusion on the residential portion and pay full LT capital gains on the rental portion.

Can client do a like kind exchange of the commercial portion of this property into another commercial rental property?

Thanks,
Debbie
 

#2
MilesR  
Posts:
726
Joined:
7-Dec-2021 11:10pm
Location:
California
Yes. Don't see why they couldn't. Just have to split up the sale and figure out how to allocate the price among the commercial side and the personal side for the amount exchanged and the part sold.
 


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