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Tag Archives: capital gain

What is the difference between capital gain and equity in a 1031 Exchange?

Tuesday, March 15, 2011

Do not confuse capital gain with equity in your 1031 Exchange. There is no comparison between the two. Equity is the amount of money you have in your pocket after you have sold the property and paid off all related liabilities and mortgages. As an example lets say you bought a property $30,000 ten years [...]

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I did a 1031 Exchange back in 2003 and am selling the property soon. Will I have to pay capital gain on the sale if I don’t buy another property?

Thursday, December 23, 2010

1031 Exchange, tax-deferred exchange, real estate exchange, like-kind exchange, IRS section 1031 Exchange….these all mean the same thing and are a vehicle for deferring the capital gains on an investment property or business property until your next sale. A common mistake that people make is with a 1031, they think they will NEVER have to [...]

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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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