This is a common question when it comes to 1031 exchanges. The short answer is no, you cannot 1031 exchange stocks and use the proceeds to purchase real estate.
1031 Exchanges are for Real Estate Alone
1031 exchanges are only for real estate. You cannot do a 1031 exchange with stocks. You could, however, use the qualified opportunity zone legislation to reinvest those stock gains in a opportunity zone fund. Deferral is only until 12-31-2026, but up to 15% of those gains may be forgiven if you hold the investment for seven years (10% for the first 5 + 5 % for the next 2) before 12-31-2026. With that in mind, you ideally need to invest quickly and then the gain on the appreciation on the investment within the opportunity zone fund is excluded if you hold for at least a total of 10 years and sell before 2047.
CPEC1031, LLC
At CPEC1031, LLC we provide 1031 exchange services to clients all across the country. Contact us today to see how we can help with your next 1031 exchange of real estate.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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