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“Can
I buy REIT shares as my replacement
property?”
I often hear about qualified intermediaries
saying you can, but what does
the IRS say?
Absolutely
not! The IRS has ruled that
REIT shares do not qualify as
replacement property in a 1031
exchange. A REIT, or Real Estate
Investment Trust, is like a mutual
fund that owns real estate. It
is a security, however, not real
estate.
--The
Experts
Editor's
Note: Since
this Tee-Shot was
originally published
on February 3, 2003,
there has been an
interesting development,
allowing an exception
to this in very specialized
circumstances. You
can read about this
in Tee-Shot
#56.
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--T.E.E.
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TEE-Shots
are Tips
from the Exchange
Experts
that are designed to make you think about, and ask questions about, the 1031 exchange process.
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