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Selling Land, Buying Land |
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We're selling land in Vermont and are hoping to split the profit between buying land in California and land in Canada. As far as we know, the only tax is the taxes involved in closing on each individual sale, but does capital gains tax also imply if we're reinvesting the liquidated assets promptly, or is there another tax to be concerned with? |
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If the land was held for investment purposes and the new purchases are for the same purpose, it may be worth consulting a lawyer, accountant or other professional who is a qualified Section 1031 intermediary to see if your transaction would qualify for a tax-deferred (not tax-free) exchange. Find out well in advance of taking any action, because in order to do that you have to follow some strict rules on deadlines, documentation, and handling of money.
If you don't qualify for Section 1031, I know of no way to avoid capital gains tax. |
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Edith
Originally published on September 28, 2007 |
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