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rsculptor52000

Jan 28, 2004, 1:34 PM

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Section 1031 Exchange of property

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Have you or do you know of anyone who has done a Section 1031 exchange of property where the proceeds from the U.S. property are reinvested in Mexico?

Thanks.

Uncle Jack

Jan 28, 2004, 2:03 PM

Post #2 of 5 (513 views)

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Re: [sculptor52] Section 1031 Exchange of property

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You better check with your tax guy before you even consider such a move. I believe that the wording in the Section 1031 Exchange regulations require that you must reinvest the money in property in the US and that it be "like for like". It is highly unlikely that the IRS would allow you to move money out of the country where they no longer have any oversight and you no longer have to report to them what you do with the property or the proceeds.

uj

El Gringo Nuevo

Jan 28, 2004, 8:56 PM

Post #3 of 5 (481 views)

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Re: [Uncle Jack] Section 1031 Exchange of property

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I asked the 1031 exchange question of a 1031 exchange professional here in the states and received a negative answer. Had hoped to trade a rental here for a rental in Lakeside. Sorry. If someone knows of a legal way around this problem, I would like to know. Thanks

jennifer rose

Jan 28, 2004, 9:22 PM

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Re: [Uncle Jack] Section 1031 Exchange of property

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Jack's right. Consult with your tax counsel.

Under Section 1031(j)(1):

(h) Special rules for foreign real and personal property

For purposes of this section -

(1) Real property

Real property located in the United States and real property

located outside the United States are not property of a like

kind.

rsculptor52000

Jan 30, 2004, 9:53 AM

Post #5 of 5 (411 views)

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Re: [jennifer rose] Section 1031 Exchange of property

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Thanks for the responses. My original thought had been that it was too good to be true to transfer proceeds to Mexico. Guess I'll have to move back to Virginia (presently in California) to avoid capital gains taxes if and when I decide the sell the property.

BTW, it's raining in Silicon Valey this morning.