Ask Experts Questions for FREE Help !
Ask
    essayons's Avatar
    essayons Posts: 1, Reputation: 1
    New Member
     
    #1

    Oct 9, 2006, 07:48 PM
    Buying new rental prop before selling existing
    We want to avoid taxes on sale of existing rental which has appreciated almost 100% in the five years we have owned it.
    We might need to complete the purchase of the intended replacement before the sale of existing is final.
    Is there a provision for tax avoidance when the replacement property is bought PRIOR to sale? We own only one rental property and will still have only one when we complete this deal. Reason, obviously, is to improve cash flow, ROI.
    Thanks for any help or opinion.
    Essayons
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,818, Reputation: 846
    Senior Tax Expert
     
    #2

    Oct 10, 2006, 02:36 PM
    Essayons:

    What you propose to do is a tax-free exchange. Look up "1031 exchange" on the Internet to get the details.

    You will need professional tax and real estate help to makethis happen, and it HAS to be done exactly right for it to pass muster with the IRS.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Pre-existing condition [ 1 Answers ]

My husband was laid off his job in Feb. 2006. His insurance continued through the end of Feb. and then I added him to my insurance as of March 1st 2006. His doctor scheduled an endoscopie. It was done in May(under MY insurance). Because he had talked with his doctor about acid reflux in Jan. and...

Selling home/buying home simultaneously [ 8 Answers ]

Real estate agent and the mtg broker she works with want me to refinance loan with them, take equity out of it and buy a townhouse, move into townhouse while maintaining my mtg with my present home while trying to sell it. I called Wamu (my original lender) and questioned him about this and he...

Splitting deduction interest & prop tax [ 3 Answers ]

My ex & I sold our home during our divorce in 2005. On my Schedule A, do I have a right to claim one half of the mortgage interest and property taxes paid during the time we owned it? What if I claim half and he claims the entire amount? We lost money on the sale. Is there a deduction for that?


View more questions Search