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Updated over 3 years ago on . Most recent reply presented by

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Olga Daisel
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Renting and then building on the same lot, tax questions

Olga Daisel
Posted

I have a rental that I'd like to demolish and then build a new house for sale. Can I use 1013 exchange when I see it or not?

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Ashish Acharya
#2 Tax, SDIRAs & Cost Segregation Contributor
  • CPA, CFP®, PFS
  • Florida
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Ashish Acharya
#2 Tax, SDIRAs & Cost Segregation Contributor
  • CPA, CFP®, PFS
  • Florida
Replied
Originally posted by @Olga Daisel:

I have a rental that I'd like to demolish and then build a new house for sale. Can I use 1013 exchange when I see it or not?

 You cannot 1031 exchange to the house that you are going to sell. Also, 1031 is almost not required if you are going to sell the replacement property anyway. 

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