1031 for land: what qualifies, what does not
Lesson 3 of 6 · Keep what you made
1 · Learn the move · Constraints + negative instructions
The like-kind exchange (the '1031' in the trade's shorthand) is the tax question land sellers most want a yes to, and the model is happy to give one: land for land, it says, and it names the rules. The trouble is that the answer turns on facts the model cannot see - why you held each property, what you did with it, whether you touched the proceeds, and whether an intermediary was in place before closing. So this lesson is built out of what the model must not do. It must not say any property qualifies. It must not describe your intent in words your records do not use. It must not compute a deadline, which is a separate job done from a closing date with the intermediary. What is left is useful: each property you are thinking about, what the records show about how you held it, and the exact question for the qualified intermediary or the CPA. Sold-quickly parcels get the question put plainly, because property held for resale is the hardest case.
I am thinking about a like-kind exchange. For each property below, list what my records show about how I held it and the question for my CPA or intermediary. Do NOT say anything qualifies. Do NOT describe my intent beyond my records' words. Do NOT compute any deadline. First question at the top: was an intermediary engaged before the sale closed? [property notes and records]
2 · Your turn. You write the prompt
You closed on a tract in Orrin County you held for six years and leased for hay. You are looking at a larger tract to buy and also a two-acre lot a neighbour offered. Separately, you flipped three small parcels this year and wonder if those proceeds can go in too. You have closing statements and your notes. Write the prompt that sorts this into questions without letting the model tell you what qualifies.
Write the prompt for this scenario as given, or swap in a real one from your own work. The score works the same either way.
Remember: the AI sees only your prompt, not this page. If the situation isn't in your prompt, it doesn't exist.
Optional. These shape the output when you run your prompt below, not your score.