Our client was under agreement to sell his commercial property when a fire broke out and destroyed one of the two buildings on the property.
After carefully renegotiating the agreement, he proceeded with a Section 1031 Exchange for the land and existing building and used Section 1033 for the casualty loss portion of his property. Under Section 1033, he will have twenty-four months to reinvest in similar investment property. Since it was a garage that was destroyed, he will simply use his insurance proceeds to rebuild a garage at his new location.
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