1031 exchanges
it's very difficult to put toothpaste back in the tube. I recommend you first do a google search on vacation homes, second homes and 1031 exchanges.
I'm sure you realize the following:
1. a rental property / vacation home cannot be occupied by the owner for more than 14 days per year, or ten per cent of the rented days, whichever is fewer. No one would sit on a 2.5 million property without using it for more than 14 days per year
2. Even if you do eventually qualify for a 1031, and the rules are incredibly restrictive, you cannot take a penny out of the proceeds of the sale .. 100% of the 2.5M proceeds need to go towards the purchase of like kind property... and you would have to show that / those property (ies) would have to be income producing.
Since you might not be an experienced real estate investor, you might want to explore TICs (tenant in common) properties. Im not a fan, but it could fit a need.
Over a CPA I would first, contact Starker Services, the leading company specializing in 1031 exchanges. They know the rules inside and out. Second, a true wealth advisor might be employed to see how that 2.5M fits into your overall wealth and inheritance strategy.
|