Capital Gain tax

[Johnnycheng6]

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?

[Anonymous_]

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@Johnnycheng6 wrote:

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

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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-ti...

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).