I'm not going to try game the system, but I'm curious on the following:
Say I sell at large piece of land for $15,000,000 at the end of 27
years of holding. I make 14,000,000 on it, proceeds (bought for 1 million). From Turbo Tax
inputting, the tax appears to be in the vicinity of $5,000,000. I want
to see if I can do ANYTHING with the 1031 mechanics as follows:
I buy an apartment building and its land within the 45 days of the sale above for
$400,000. This is certainly not equal or greater value, but can I
invoke a 1031 exchange and get some kind of prorated cap gain deferral
on the taxes I'm going to owe for the $14,000,000 gain? The taxes, I'm
noticing, are huge. Any kind of
deferral could help.
If this is possible, and noting the taxes before any 1031 consideration
are in the vicinity of $5,000,000, approximately what amount, in the
above scenario, would one be able to get deferred of this 5,000,000?
