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1031 Exchange Preconstruction Contracts
Author: Rick Halperin

( Previous Page )

exchange for preconstruction contract on a condominium is to obtain a tax opinion letter from a certified public accountant stating that the contract-for-contract exchange qualifies. Investors must be careful since, if the transaction is not handled appropriately, the IRS may raise a red flag if it suspects the contracts being exchanged are for flipping, not investing.

When attempting to navigate the path that leads to successful 1031 exchanges for preconstruction contracts, all real estate professionals and investors should seek legal and tax counsel on their transactions. In addition, exchangers should hire a well-experienced, independent qualified intermediary to ensure their 1031 transactions are managed according to IRS guidelines.

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