Capital Gain

What is the name of your state? IOWA

I recently sold a property for a substantial gain, which was collateral for another piece of ground that we own. Upon selling the property, I had to pay a substantial amount on the property that we currently own, since the property we sold was collateral. Does anyone have any ideas or is it even possible that we can somehow take that off our taxes or not pay so much of a gain since we had to pay so much of the money on the property? It did not qualify for a 1031 exchange since we had bought the property the year before. We are also depreciating the current property that we own if that helps. Thanks for any help you can give. I have a feeling we are just going to have to pay the whole gain but it would sure be nice if we could get around some of it. Thanks

I agree you cannot exchange into a property you already own. There is nothing I see from what you posted which would not require you pay the full amount of the capital gain on your sale. (And, any recapture required for depreciation.)

Sorry.

Ok

Thanks for replying. It would be nice since we "had" to pay so much of it on the other property, to not have to pay so much in taxes.