I was asked a question I believe I know the answer too but wanted to get a verification.
A client owns a building and the business and is retiring. His financial advisor wants to reinvest the money from the sale of the business and building on a 1031 exchange to an investment group that buys commercial buildings.
1. I believe you can not 1031 exchange the sale of the business at all. And if you could it would have to be for another business (like for like).
2. Selling the building then putting that money in with a real estate investment group MAY be ok if they invest in commercial buildings. This would be retail or office building. Not apartments. BUT it may have to be directly exchanged for another building. Not put into an investment. Now that I write it I think the investment thing won't work.