13. Can I convert my partnership interest into a tenant-in-common just before or after my exchange?

It is generally accepted that, if a partnership is dissolved and the partner's partnership interest are converted upon distribution into divided or undivided real property ownership interests, the partners may than be able to trade such real property interests under I.R.C. Section 1031, provided that the partnership dissolution and distribution occurs long enough before or after the exchange to satisfy the "held for investment" requirement. Such liquidation and/or conversion of partnership interests involve highly technical questions and favorable treatment of such transactions is by no means assured. Exchangers must secure qualified legal or accounting counsel before attempting these transactions.

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