Can you 1031 off a Joint venture for new construction condos?
If I do a joint venture on a ground up construction condo deal with a landowner where I pay them out profit split at the end, can they 1031 ? They would receive 1 lump sum at the end of the deal
[{"id": "ilym3ae", "text": "You\u2019re asking if they can 1031 based on the profit made from you both selling the property after construction?", "replies": [{"id": "ilz0b1l", "text": "It sounds like he\u2019s proposing a preferred return using the value of the land as the principal contribution, but would need way more info .", "replies": [{"id": "ilzsbjc", "text": "Yeah this one falls into \u201cyou should contact a QI\u201d territory.", "replies": [{"id": "imgwuk8", "text": "Yeah essentially we would pay X at the end of the deal + X% of the profits. It would be 1 distribution upon transition to long term financing after stabilization", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ilyu3ne", "text": "My assumption is yes but what do I know. You probably shouldn\u2019t even bother asking this question on Reddit.  I would have the landowner run their exact situation by their attorney/ accountant.", "replies": [], "depth": 1}, {"id": "ilyxwb1", "text": "Yes. Talk to a cpa", "replies": [], "depth": 1}, {"id": "ilzxt15", "text": "I believe so, but depending on his basis in the land, this might not be as attractive for the landowner as you initially think.", "replies": [], "depth": 1}, {"id": "im0czf3", "text": "Talk to a QI.", "replies": [], "depth": 1}, {"id": "imgwp15", "text": "Thanks everyone for the feedback", "replies": [], "depth": 1}]