Tax Planning Tips For Inherited Properties
By Benny L. Kass
Washington Post
Q: My mother recently died, and her wish was that her estate be divided equally among her four children. My three siblings and I inherited three properties from her. Two were rental properties, of which one has been sold. We will soon be closing on the sale of the other rental. I just recently became aware of the 1031 tax exchange. Is this something we should consider?
A: Once you have sold a piece of property and have received the sales proceeds, it is too late to do a 1031 exchange (also called a Starker exchange). But in your situation, I doubt that it would make sense to consider an exchange for the remaining property, anyway.
Real estate investors generally do a 1031 like-kind exchange to defer the large capital gain they may make when they sell their properties. (Exchanges are not an option for the sale of your own residence.)
Read the rest of the story.
Washington Post
Q: My mother recently died, and her wish was that her estate be divided equally among her four children. My three siblings and I inherited three properties from her. Two were rental properties, of which one has been sold. We will soon be closing on the sale of the other rental. I just recently became aware of the 1031 tax exchange. Is this something we should consider?
A: Once you have sold a piece of property and have received the sales proceeds, it is too late to do a 1031 exchange (also called a Starker exchange). But in your situation, I doubt that it would make sense to consider an exchange for the remaining property, anyway.
Real estate investors generally do a 1031 like-kind exchange to defer the large capital gain they may make when they sell their properties. (Exchanges are not an option for the sale of your own residence.)
Read the rest of the story.
posted by Mike at
8:16 PM
