I have been a Motley Fool member for about two years now, thank you for the foolish lessons. I would like to ask a question about property sales and taxes. The question is,
“Do I have non-taxable options on a private land sale in an LLC?”
OP: {“Do I have non-taxable options on a private land sale in an LLC?”}
“A 1031 exchange. By following proper procedures, you can sell one property and buy another with the proceeds without tax consequences.”
1031 exchange affects federal income tax; OP inquired about “property and sales tax” and federal income tax is not a property tax; and it is not really a sales tax in that it not paid on the gross sales price, unlike state transfer taxes in those states that have them.
For OP’s sake, I would also note that a 1031 exchange defers taxes until a later date (absent death and step-up in basis) and generally does not eliminate them.