[Moved into a new thread from: Capital Gains When Selling Real Estate --admin LadyGeek]
We have a large property with aging rental homes. The property has been rezoned for commercial/industrial uses.. this property is very much needed for commercial development do to zoning, location and infrustructure. We also own other undeveloped residential lots. I would like to sell the commercial property with the aging rental homes to support the addition of new businesses and local jobs. Then I would like to do the right thing and build new affordable housing on the undeveloped properties that we already own. It appears if I were to do this the Cap gains on the sale of the commercial property sale would destroy the revenue needed to build the new housing. I don’t see a provision in 1031 exchanges that allow you to defer into near-future new construction on land you already own. Is there a way to defer the cap gains taxes in this situation or am I better off to just keep what we have and block new commercial development.
We have a large property with aging rental homes. The property has been rezoned for commercial/industrial uses.. this property is very much needed for commercial development do to zoning, location and infrustructure. We also own other undeveloped residential lots. I would like to sell the commercial property with the aging rental homes to support the addition of new businesses and local jobs. Then I would like to do the right thing and build new affordable housing on the undeveloped properties that we already own. It appears if I were to do this the Cap gains on the sale of the commercial property sale would destroy the revenue needed to build the new housing. I don’t see a provision in 1031 exchanges that allow you to defer into near-future new construction on land you already own. Is there a way to defer the cap gains taxes in this situation or am I better off to just keep what we have and block new commercial development.
Statistics: Posted by JATRAN — Sat May 25, 2024 1:41 pm — Replies 1 — Views 102