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Mike, I’m not sure which, or both, that you’re asking about. Yes, I once sold some property to a buyer who had set up a 1031 exchange. No, I’ve not had personal experience with the 721 — that appears to be ideal for people who have acquired some cash that they don’t know otherwise how best or where to invest, and are not able or motivated to create value for deals with higher returns.
One interesting feature of the 1031 exchange is that if you acquire investment property in a 1031 exchange that is, or that you can turn into, an income property and keep it as long as you live, your heirs can get a stepped up basis (per IRS tax rules). That step up in tax basis gives them a greatly reduced capital gains tax should they ever sell. Or should they choose to keep that income property as long as they live, the step up basis is available again to their heirs. This is a long time understanding of benefits of the 1031 exchange. I haven’t explored if the 721 can be operated any similar way.
–Dee
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