Property and taxes

Financial Planning Tax Strategies
1

Hello,

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?”

Thank you for your time.

Spirititan

2

“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.

JLC

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3

JLC:

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.

Regards, JAFO

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