Posted on: 30th Aug, 2010 05:47 pm
I have a house and property 120 x 100 that is sub divided the property is being sold separate if I invest in a new property immediately will I still have to pay capital gains.
Hi rvitale!
Welcome to forums!
As far as I know, under the IRS Code 1031, the seller can avoid capital gains taxes on their gains by re-investing them in a similar kind of property. You should take the help of a lawyer or a tax advisor and set up the sale so that the proceeds are put into an escrow account and you can use it to buy a new property. There is a time limit of 45 days to choose the new property and 6 months to complete the transaction.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I know, under the IRS Code 1031, the seller can avoid capital gains taxes on their gains by re-investing them in a similar kind of property. You should take the help of a lawyer or a tax advisor and set up the sale so that the proceeds are put into an escrow account and you can use it to buy a new property. There is a time limit of 45 days to choose the new property and 6 months to complete the transaction.
Feel free to ask if you've further queries.
Sussane