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by CareyBot

DEAR BOB: I inherited land that has a cost basis of about $100,000. It was recently sold for $400,000. I am looking to buy a rental beach condo for $250,000. Can I delay reporting the capital gain on $250,000 as a tax-deferred exchange? – Charles S. DEAR CHARLES: If you already closed the sale of your land, without having the sales proceeds held by a qualified third-party accommodator-intermediary beyond your constructive receipt, you can't qualify for an Internal Revenue Code 1031 tax-deferred exchange. Purchase Bob Bruss reports online. However, if the land sale has not yet closed, then you can arrange for an IRC 1031 tax-deferred exchange if the beach condo will be a rental property. If it is to be your personal residence or a vacation home, then it can't qualify for a tax-defe...