[rajinder]

I have purchased a 6 acre plot of land and have legally divided it into 2 , 3 acre plots... I developed one of the plots already with a manufactured home, it has a solid foundation ( so no longer mobile)... I want to find the best way to handle this property so I can avoid major captiol gain taxes and utilize the gains for developing the second plot of land,. can someone help me please?
I was told that if I put the house for rent for a minimum of 6 months to a year, I can then sell the home (unsolicited) and avoid the capitol gains tax, how true is this or what would actually be the optimal way to go about this...
I can set up a LLC for the second plot before I start to develop it as I did the first plot... thankyou

[AtlantaTaxExpert]

The process they are talking about to avoid the capital gains tax is a 1031 like-kind exchange.

This process allows you to sell rental real estate that has appreciated greatly, then take the proceeds of the sale to buy different rental real estate.

In my opinion, you could NOT use the money to develop the second plot of land. You could use it to buy another plot of land, if your intent was to build a rental house on that land.