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J.Hazelbaker, Lawyer
Category: Real Estate Law
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I purchased a property in Jan 2011 via a 1031 exchange of a

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I purchased a property in Jan 2011 via a 1031 exchange of a property I had owned since 1993. I sold the Jan 2011 property in June 2011. Is the property sold in June 2011 considered a short term sale, or is it considered a long term sale in regard to Schedule D since the original property was purchased in 1993.
Submitted: 4 years ago.
Category: Real Estate Law
Expert:  J.Hazelbaker replied 4 years ago.

J.Hazelbaker :

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J.Hazelbaker :

The subsequent sale would be a short-term capital gain.

J.Hazelbaker :

The holding period does not related back to the date of purchase of the prior property. The 1031 shielded your long-term capital gains on that original property, but does not cover the second property purchases with those proceeds.

J.Hazelbaker :

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