capital gains tax

I was wondering if I could get some advice. I have some lake front property that I would like to sell. Aside from the capitl gains tax is there any other way to avoid paying at the high tax rate.

Also does anybody know if I can use the 1031 on just a portion of the sale of the property. (Then I would be taxed on just the remaining sale price)

Thanks

Comments(2)

  • DaveT29th May, 2003

    For your first question, you need to be a little more specific. What tax rate are you trying to avoid?

    Yes, it is possible to use your lakefront property as the upleg in a 1031 exchange, then reinvest only a portion of the proceeds into your replacement property -- deferring capital gains taxes on that portion. The balance of the sale proceeds that did not get used in the exchange will be taxed.

  • wexeter15th June, 2003

    You can apply the 1031 exchange structure to the portion of the property that is held for investment, income production (rental) or used in a trade or business. As long as a portion of the property qualifies based on the above criteria, then you could structure the sales as a partial 1031 exchange and pay capital gain taxes on the balance of the sale.

    Hope this helps.

    _________________
    William L. Exeter -
    Diversified Exchange Corporation[ Edited by wexeter on Date 07/09/2003 ]

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