Posted by William L. Exeter on July 13, 2003 at 18:45:29:
The two year reinvestment (Section 1034 Exchange) is no longer available and was replaced by Section 121 of the Internal Revenue Code, which allows owners of real property held and used as the taxpayer’s personal residence for 24 months out of the last 60 months to exclude up to $250,000 if single and $500,000 if married. However, the property must be their personal residence.
In this case, it sounds like it is property that has been held as either income producing property (rental) or for business use and the only way to defer the capital gain taxes is to do a 1031 exchange.
The taxpayer has 45 calendar days to identify what they intend to acquire and 180 calendar days to complete their 1031 exchange. Both time periods begin the day after the close of escrow of your relinquished (sales) property.
Let me know if you have any more questions regarding 1031 exchanges.
Bill Exeter
Diversified Exchange Corporation