[WSBARP] 1031 Exchange and Like Kind Property

[Koons, Warren]

Yes - if you are buying the standing timber via a timber deed and harvest after the deed transfers title -- usually buyer has defined period of time to remove the timber. 1031 Services, Inc. in Bellevue is an excellent qualified intermediary. Warren Koons

Sent from my iPhone

On Apr 20, 2015, at 6:47 PM, "Jim Doran" <jim at doranlegal.com<mailto:jim at doranlegal.com>> wrote:

In your opinion if there is a purchase agreement “before” the trees are cut, then they are real property.  Right?

James R. Doran
Attorney at Law
100 E. Pine Street – Suite 205
Bellingham, WA 98225
(360)393-9506
jim at doranlegal.com<mailto:jim at doranlegal.com>
www.doranlegal.com<http://www.doranlegal.com>

From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Tom J. Westbrook
Sent: Monday, April 20, 2015 5:54 PM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] 1031 Exchange and Like Kind Property

Timber (trees) is part of the real estate. When severed, timber or trees become logs. Logs are personal property. The sale of logs cannot be part of a 1031 exchange – while the sale of trees on land can be part of a 1031. You just need to get the vernacular correct.

Sincerely,

Tom

Thomas J. Westbrook
Attorney at Law

<image001.jpg>

Rodgers, Kee & Card, P.S.
324 West Bay Drive NW, Suite 201
Olympia, Washington  98502

Phone: 360-352-8311
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From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Jim Doran
Sent: Monday, April 20, 2015 4:10 PM
To: 'WSBA Real Property Listserv'
Subject: [WSBARP] 1031 Exchange and Like Kind Property

Here is the line from the IRS information website that I think clearly denies the use of a 1031 Exchange to a the situation where the owner of real property with timber on it sells the timber and then wants to use the proceeds from the timber sale to buy more real estate.  The trees are personal property, are they not?

“Real property and personal property can both qualify as exchange properties under Section 1031; but real property can never be like-kind to personal property.”

James R. Doran
Attorney at Law
100 E. Pine Street – Suite 205
Bellingham, WA 98225
(360)393-9506
jim at doranlegal.com<mailto:jim at doranlegal.com>
www.doranlegal.com<http://www.doranlegal.com>

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