How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask MequonCPA Your Own Question
MequonCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2342
Experience:  CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
Type Your Tax Question Here...
MequonCPA is online now
A new question is answered every 9 seconds

In 2003, my father passed away and left some property to me

This answer was rated:

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.



What is the property currently used for.

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



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.



MequonCPA and other Tax Specialists are ready to help you