Capital Gains Tax - Posted by Bobby Singh

Posted by William Bronchick on October 03, 2003 at 20:24:08:

Well, I’m not sure what this has to do with capital gains, although it appears you are suggesting a 1031 tax-deferred exchange. In concept you could, but the rules require that the relinquished property was for “productive use”, whereas you developed it with the intent of resale. So, chances are, it would not qualify.

Also, if you already closed the transaction it’s too late to do an exchange.

For a summary of the rules: http://www.1031x.com

Capital Gains Tax - Posted by Bobby Singh

Posted by Bobby Singh on October 03, 2003 at 14:32:40:

Bill,

Love the site. I had a question. I just recently sold a 3 family house in NYC (not my primary resident). It was a new construction I developed and I want to use the profit to buy another house. Would I have to park the money in a Escrow account? Can I pay off the money I borrowed from family and friends to build the house without it going through an escrow account? And/or can I use the proceeds of my sale, not deposit it, but forward it to the seller of the new property I am seeking?

Bobby Singh
NYC