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Cap gains tax on granting of easement?

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Junior Member
What is the name of your state (only U.S. law)?California

I am contemplating granting an easement to the property owners next to a commercial property I own. I would like to know if this will be considered a taxable event. Further, I acquired the property in an IRS Section 1031 tax deferred exchange, so the basis is lower than what I paid for it. Anticipating that this will be a taxable event, how do I figure out the gain? Thank you.
 



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