Capital Gain tax

Johnnycheng6 — Fri, 25 Feb 2022 01:04:27 GMT

Recently just sold llc with property attached. Sold for 900k with partner. Originally cost 640k with cost. Since it's half I have capital gain of 130k. Can I do a 1031 exchange with a property just bought for investment? Will this defer all taxes owe om the capital gain?

Re: Capital Gain tax

Anonymous_ — Fri, 25 Feb 2022 01:14:49 GMT

@Johnnycheng6 wrote:

Can I do a 1031 exchange with a property just bought for investment?

Not after you sold the property and received the proceeds.

You would have needed to have set up the exchange (almost certainly with the services of a qualified intermediary) in advance so that you would not be in actual or constructive receipt of the proceeds from the sale.

See https://www.irs.gov/businesses/small-businesses-self-employed/like-kind-exchanges-real-estate-tax-tips

Note that if you sold an interest in your LLC, Section 1031 exchanges are now limited to real property (which an interest in an LLC is not).

topic Capital Gain tax in Get your taxes done using TurboTax

Capital Gain tax

Re: Capital Gain tax