capital gains - Posted by Al CA

Posted by Jimmy on April 08, 2006 at 08:31:34:

“rolling profits” is the wrong way to describe it. you can sell one investment property in a Section 1031 exchange, and the acquire a replacement property. if you do it right, you will avoid taxation on the first sale, and your basis in the old one will carry over to the new one. By the way, DO NOT try to do this yourself. Hire a professional exchange company.

The 10% withholding to which you refer has nothing to do with the IRS. This is the rule of the Franchise Tax Board. sarted 3-4 years ago, and applied to sales of properties which are not primary residences of seller. not sure if yo can sidestep the withholding with a 1031, but the tax can certainly be refunded when you file your taxes for the year in question.

capital gains - Posted by Al CA

Posted by Al CA on April 07, 2006 at 21:15:49:

In calif., can I roll profits from investment prop into another prop without tax liabilty?
I’ve heard that there is a 10% hold on profits by IRS.