Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Just in case you do not know...

I am assuming that you (a) do want to sell and (b) are not concerned about the tax on the gain.

If you wanted to continue with some sort or RE investment you can use a 1031 tax deferred exchange to roll your tax basis forward. You can even do this with a deal where you no longer have any property management responsibilities. Hence you could defer the tax (only deferred) while shifting to a situation where you collect a check each month and do not get calls from tenants.

1031 is the section of the IRS code dealing with like-for-like exchanges. Pretty much any real estate for any other real estate held for investment purposes.

You defer the tax gain. Hence one day you will either have to pay tax on the gain or will leave it to someone who can avoid the tax on the gain by getting the property at its stepped up basis.

John
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.