Skinny On 1033 Exchange

I am looking to purchase a lot that has a structure on it that was damaged during an earthquake.

It and the site don't meet current code, but if they are condemed by the country, that can be rebuilt to the old set-backs.

Now this is interested to me as it seem I would be entitled to some 1033 entitlement for the proceeds of the project. What's the value to which I am entitled due to the condemnation.

Any FAQ or IRS ref?

[ Edited by cjmazur on Date 06/18/2007 ]

The property has to be partially or totally destroyed due to a natural disaster or must be condemned via Eminent Domain by a government body that has Eminent Domain authority.

Here are some links for you:

Code: http://www.exeterco.com/section_1033_internal_revenue_code.aspx

Regulations: http://www.exeter1031.com/section_1.1033_internal_revenue_service_regulations.aspx

Summary of Various tax-deferral strategies: http://www.exeterco.com/Summary_Tax_Strategies.aspx [addsig]

thanks for the cites.