Legal Question in Tax Law in Illinois

Can a commercial property be sold then reinvested in a residential rental property without paying capitol gains tax?


Asked on 4/19/17, 11:17 am

1 Answer from Attorneys
Virginia Prihoda Law Offices of Virginia Prihoda

For purposes of Internal Revenue Code Sec. 1031, real estate is real estate, irrespective of whether it's vacant land, or commercial or residential, provided that the properties are both located within the United States. Refer to Internal Revenue Service FS-2008-18, February 2008. The amount of gain deferred (not forgiven) depends on the tax basis of the property relinquished and the cost of the property acquired.

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Answered on 4/19/17, 2:14 pm


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