@M-MTax wrote:
If this is investment property, you may be able to do a section 1031 "like kind exchange"
But it would be advisable to follow Revenue Procedure 2008-16 and that requires owning the relinquished property for 24 months before the 1031 exchange AND owning the replacement property for 24 months after the exchange among other requirements. That ownership period for the relinquished property might not be possible if the property is inherited and a quick sale is necessary or desired.
That's why I said expert advice would be required for a 1031 exchange. I would expect that there would be an exception to the holding period for inherited property, similar to the long term capital gains rule. But I could be wrong.
In any case, if this is the taxpayer's mother's house, the 1031 doesn't apply. And if this is business property, the taxpayer probably needs advice on a lot more issues than just a 1031.
