DEAR BOB: I know you answered a similar question several months ago, but I don't recall the answer. I own a six-unit apartment building, in which my wife and I have a large profit. If we make an outright sale, we will owe a huge capital gain tax. My wife remembered an item in your column saying we could make a tax-deferred trade of the apartment building for our "ultimate dream home," and then we could sell the house in a few years to claim $500,000 tax-free profits. Is there a minimum holding time for the house? --Harold J. DEAR HAROLD: Yes. You first can make an Internal Revenue Code 1031(a)(3) Starker tax-deferred exchange of your apartment building for your dream home. Purchase Bob Bruss reports online. However, please remember the basic Starker exchange rules: 1) you must trade equal...
Get Inman via Facebook Messenger
Our top headlines delivered once a day.