Are you a small business owner or are you a real estate investor looking to see ” Can an S Corp Do a 1031 Exchange”. Answer is YES. As long as you sell the Real Estate that is held under the S Corp and buy another property under the Same S Corp you allowed to do the 1031 exchange. You still have to follow the rules set by IRS for 1031 exchange.
Many business owners buy their business and their business properties under their S Corp. When you sell your business and property, business portion will be taxed as capital gains but the real estate under S Corp can be exchanged into another Real Estate property.