Capital Gains Taxes
My wife and I recently sold our vacation home in the Hamptons and we're buying another using the 1031 Exchange program. The new house will cost us much less than the house we just sold. What would be the tax
implications on the difference ?
Asked on 7/26/07, 12:16 pm
1 Answer from Attorneys
Norman Nadel
Norman Nadel, Esq.
Re: Capital Gains Taxes
Section 1031 does not provide for a tax-free exchange of residential property. The transaction you describe would result in a taxable sale of your residence (with a probable $500,000 exclusion from the gain). The rollover provisions were repealed quite a while ago.
Answered on 7/26/07, 12:34 pm
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