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rule 1031

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mooseski54

Junior Member
What is the name of your state? Texas
If a partnership owns real estate and sells said real estate, then the patnership dissolves. Can the individual partners defer captiol gains tax under rule 1031?
 


tdavidl

Member
i don't believe so. i believe the properties must have the same owner, so if the owner of the r/e being given up is owned by a partnership & then an individual owns the property to be received, that doesn;t qualify.

if you disssovled the prtnrshp before selling the r/e so you are now owner of 50% of the r/e you may be able to use code sec 1031 for your half.

you should consult with a tax professional to clarify this. code sec 1031 sounds simply, however, if you don't dot the I's and cross the T's then the gain won't qualify for tax deferral.
 

Snipes5

Senior Member
You need a 1031 Facilitator. Worth their weight in gold.

You must set up the 1031 BEFORE you sell the property.

Snipes
 

Snipes5

Senior Member
A Real Estate or Tax Attorney in your area should be able to refer you.

A 1031 facilitator is someone who arranges 1031 exchanges and handles the paperwork, which is complicated.

Snipes
 

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