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MequonCPA
MequonCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2342
Experience:  CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
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In 2003, my father passed away and left some property to me

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In 2003, my father passed away and left some property to me in his will. The property was worth $75000 at the time. Now, the property is worth $200000. My question: Am I liable for the capital gains for the difference? If so, would I be able to do a real estate exchange to defer the tax consequence? I would like to exchange it for an income producing property.   Thanks.

DearCustomer-

 

What is the property currently used for.

Customer: replied 8 years ago.
It is a piece of land in N.Carolina.

DearCustomer-

 

If you sell the property you will be subject to capital gains on the sale.

 

You are allowed to structure a 1031 exchange, this would defer the tax until a later sale of the acquired property. You should involve professionals if you choose this route, there are many variations on the structure. I have provided a link to IRS Publication 544. Please review pages 10 - 16.

 

www.irs.gov/pub/irs-pdf/p544.pdf

 

 

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