I owned a piece of land in Maine for 22 years. I sold it in 2022 and did a 1031 Exchange buying land in Tennessee. The Maine licenses qualified intermediary for the 1031 Exchange told me I would be required to file a ME State return, but the exchange would be recognized and no tax due from it. I completed my federal return this morning and then bought the ME State to add on to TT and went through the questions.
I have never lived or worked in Maine and typically only enter the state a few days a year, usually to fly from the airport in Portland, ME (the closest to me). I filled a tax return in ME one year over 10 years ago when I did the the required forestry work and actually earned ~8k on the sale of logs; I only mention that because there was a question about having ever filed in ME before.
There was set of questions about owning property in ME and disposing of it, then nothing else. I got to the end and then went to the forms to look over what it had done. I don't see anything in there about the exchange, looks like just a bunch of the numbers copied from the federal return and zeros for ME portions of same resulting in a 0 final number.
I'm hesitant to actually file before knowing that really is all there is to it. Does this sound correct?
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This is exactly how the Like-Kind exchange is supposed to work, you are delaying paying tax on the sale of the Maine property by rolling the gain into your basis in the Tennessee property.
This is exactly how the Like-Kind exchange is supposed to work, you are delaying paying tax on the sale of the Maine property by rolling the gain into your basis in the Tennessee property.
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