I am in the process of buying a duplex which is an illegal structure. I want the dirt, and have a waiver letter from the city that they will not enforce the violation, if we start the redevelopment process w/in 90 days.
Can I ask the city to condemn the existing structure that I can get the benefit of a 1033 exchange?
Does anyone have a reference to the requirements for 1033, most I found on the net were vague.
I am not that well informed about 1033 exchanges. I had always understood that the first step in eminent domain seizure is condemnation. Once the seizure is executed, you are eligible to use 1033 tax deferral provisions to replace the property.
I don't see that a simple condemnation for code violation fits the circumstances for 1033 eligibility. I could be wrong, but it would be interesting to hear what your tax professional has to say.
He has been shopping commercial RE in Prague. I'm waiting for the debrief on that as well.
The deal looks to be falling apart anyway. Thanks.