[WSBARP] 1031 Exchange and Like Kind Property

[Jim Doran]

No, that's not what we're doing.  No timber deed.  Just a buy and sell
agreement for the timber.  But that agreement is in place before the trees
are cut. 

 

James R. Doran

Attorney at Law

100 E. Pine Street - Suite 205

Bellingham, WA 98225

(360)393-9506

 <mailto:jim at doranlegal.com> jim at doranlegal.com

www.doranlegal.com

 

From: wsbarp-bounces at lists.wsbarppt.com
[mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Koons, Warren
Sent: Monday, April 20, 2015 7:14 PM
To: WSBA Real Property Listserv
Cc: WSBA Real Property Listserv; Lloyd McGee
Subject: Re: [WSBARP] 1031 Exchange and Like Kind Property

 

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

Facsimile: 360-352-8501

Email: tjw at buddbaylaw.com <mailto:tjw at buddbaylaw.com> 

Skype: thomas.westbrook

www.buddbaylaw.com <http://www.buddbaylaw.com> 

 

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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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