1031 Exchange for Non Profit

[Duane Anderson]

I have a non profit client who wants to do a 1031 exchange of their current building and buy a another one. I can find nothing that says a Non profit can enter into a 1031 exchange nor can I find anything that says they cannot ! Your assistance would be much appreciated.

Duane E. Anderson, CPA

[taxmandan]

I have a non profit client who wants to do a 1031 exchange of their current building and buy a another one. I can find nothing that says a Non profit can enter into a 1031 exchange nor can I find anything that says they cannot ! Your assistance would be much appreciated.

Duane E. Anderson, CPA

I'm not aware of any reason why they cannot do it. They should talk with the facilitator of 1031 exchanges, I would think they would know for certain. They are going to want to use a facilitator anyway.

[jimmcg]

I have a non profit client who wants to do a 1031 exchange of their current building and buy a another one. I can find nothing that says a Non profit can enter into a 1031 exchange nor can I find anything that says they cannot ! Your assistance would be much appreciated.

Duane E. Anderson, CPA

Assuming the transaction makes sense from an economic perspective I do not understand why a qualified non profit entity would be interested in meeting the requirements of Sec 1031 for a tax deferred exchange...... What's the reasoning here?

[JON]

If all activities are

not for profit and there is no mortgage why whould a 1031 even make a difference. the only taxable situation I think would be if you have unrelated taxable income. If your already tax free you have to do something to become taxable-do you not.