While all parts of the US generally agree on what is considered real property, every state has its own unique laws and definitions. Reading through each state’s legal definition for real property brings up some interesting tid bits here and there.
Starting in the mid 90’s casino riverboats began appearing in Indiana. At the time, the state did not allow any gambling establishments to operate on land. However, once the states began to realize what a golden goose they had, the laws were loosened and changed. Riverboat casinos in Indiana are now legally defined as real property and given the right to remain permanently moored.
2. Shellfish Land
Some fun facts from ct.gov, the state of Connecticut’s official website.
· Connecticut shell fishing generates $30 Million plus in farm-gate sales annually.
· The Connecticut shellfish industry provides over 300 jobs statewide.
· Annually, Connecticut shellfish harvests exceed 450,000 bushels of hard clams and 200,000 of bushels of oysters.
· More than 70,000 acres of shellfish farms are now under cultivation in Connecticut’s coastal waters.
Aquaculture is big business in Connecticut. It is easy to see why the state defines underwater shellfish lands as real estate.
While legal definitions may not be very exciting, dinosaur bones are. Fossils found on real property function in a way similar to oil, gas, and minerals. While the fossils are in the ground on your property, they are treated like real estate. Idaho, Minnesota, and New York are all states that explicitly define fossils as part of an individual’s real property.
While all of these items could potential be exchanged using a 1031 exchange, as Gideon Tucker once said, “No man’s life, liberty, or property are safe while the legislature is in session.” Always consult with a local expert in your area to see what your state defines as real property.
To learn more about how you can utilize the power of a 1031 Exchange visit The 1031 Investor