1031 Exchange on commercial properties
I purchased 3 office buildings as a package back in 2006. I'm selling them individually and have the first contract. Can anyone tell me generally about the tax consequences. I will be taking my taxes to a tax accountant next year so I'm not looking for direct tax advice.
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@John Rossi I would recommend looking at what you paid for each property. Then you look at what debt is remaining. You can package all of them together and sell them as a portfolio and exchange in to one large property, which is what I would recommend. What you need to do is make sure your replacement properties are equal or greater than the sold properties in purchase price and basis including depreciation. If so, and if you follow the 45 day rule of identification, you will defer taxes until later. @Dave Foster Can help explain further as you will need a QI anyway. Hope that helps!