Trading up the Property Ladder

[UTCVenturesLtd]

I have a duplex in Stavely, Ab and a house in Blairmore, Ab and would like to trade these two properties for a house in Calgary. Both are held in a corporation. Can this be done as i am not selling but would still holding a property for the same value of the two by just trading assets?

 

[Thomas Beyer]

QUOTE (UTCVenturesLtd @ Dec 3 2008, 08:44 PM) I have a duplex in Stavely, Ab and a house in Blairmore, Ab and would like to trade these two properties for a house in Calgary. Both are held in a corporation. Can this be done as i am not selling but would still holding a property for the same value of the two by just trading assets?
not (yet) in Canada .. but in the US through a 1031 exchange !

Some corporations treat a property as "inventory" on their books which is OK if the real estate is NOT the core of your business .. say a manufacturing company that needs a bigger factory could roll up their factory real estate asset to a bigger one tax free if the real estate is "inventory" .. however in your case that would be an illegal declaration of an asset !

 

[UTCVenturesLtd]

QUOTE (thomasbeyer2000 @ Dec 3 2008, 08:48 PM) not (yet) in Canada .. but in the US through a 1031 exchange !

Some corporations treat a property as "inventory" on their books which is OK if the real estate is NOT the core of your business .. say a manufacturing company that needs a bigger factory could roll up their factory real estate asset to a bigger one tax free if the real estate is "inventory" .. however in your case that would be an illegal declaration of an asset !

Thanks for the quick reply Thomas. At the moment, it is the core of the business. These properties were financed by a line of credit on a personal property to the corporation to buy them so likely the best way would be to refinance both properties and use the money to acquire the Calgary property in that manner? The value of both has risen about 100k in just 5 months making that a viable option.