We have a lot $91K for sum 3 years, now want to sell to buy a larger lot $214K what is our options? 1031 Exchange.
by 
jayjay
ANSWERS: 2
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Unless you plan to constantly re-invest in property and do so within a 45 day mark, the 1031 exchange is not the answer. By setting up a corporation and transferring the property under IRS code 351 you can avoid the deadline of deferment and maintain the profits you collected through escrow. With a corporation you have the ability to zero out capital gains tax by the end of the fiscal year by re-investing in other property or through the thousands of deductions available only through a corporation. Priority Services Group can set up this corporation and transfer your property under the 351 allowing you to keep the money you earned and reinvest in property how you see fit. Take a look at our escrow program on our website http://www.priorityservicellc.com and see if this program is right for you.
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The post by by psgllc1 on Aug 7, 2007 at 11:39 am is incorrect in saying that you only have 45 days to reinvest/purchase another property if you do a 1031 exchange. With a 1031 exchange - you have 180 days to purchase one or more replacement properties (that is about 6 months). The 45-day deadline pertains identifying up to 3 properties you might purchase (you can identify more than 3, but there are some restrictions on that). If you do plan to purchase more property after you sell the lot, then a 1031 exchange would be a good option. www.1031taxinfo.com is a website with some great information on 1031 exchanges.
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