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Tag Archives: basis

How do I figure the basis in my 1031 Exchange Replacement Property?

Friday, February 25, 2011

The rules for figuring basis for property acquired in a 1031 exchange take into account the gain is not forgiven, but “postponed” This is accomplished by providing a “substituted basis” for the property received. The basis of your Relinquished Property exchanged without recognition of gain becomes the basis of your new property. Your old basis [...]

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Can I sell my condo as a 1031 Exchange even though I intended to rent it?

Tuesday, December 28, 2010

If you sell your condo right now, would the amount realized from the sale (sales price minus all selling expenses including commissions, etc.) be more than their cost of the condo including closing costs? If you have no gain, a 1031 Exchange wouldn’t make any sense. If there is a gain, the property should qualify [...]

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Can I 1031 Exchange an easement and avoid capital gain on the sale?

Wednesday, December 22, 2010

Granting or selling an easement is usually not a taxable sale of property so you really don’t have to consider a 1031 exchange. Instead, the amount received for the easement is subtracted from the basis of the property. If only a part of the entire tract of property is permanently affected by the easement, only [...]

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