Comments on: Profit on remodel home 20k Help with tax info please? http://bestdiytips.com/profit-on-remodel-home-20k-help-with-tax-info-please/ Do it Yourself Tips and Tricks Wed, 30 Dec 2009 08:20:40 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: bull_rooster_aardvark http://bestdiytips.com/profit-on-remodel-home-20k-help-with-tax-info-please/comment-page-1/#comment-746 bull_rooster_aardvark Tue, 26 May 2009 06:43:21 +0000 http://bestdiytips.com/category/profit-on-remodel-home-20k-help-with-tax-info-please/277/#comment-746 Possibly you can 1031 exchange into the new property (essentially this is a property exchange where taxes are deferred until you sell the newly purchased property) and avoid the tax. Still to do a tax-deferred exchange the property being bought must be the same kind of property as the one being sold. The IRS doesn't clarify very well what "same kind" means, but it still doesn't sound like this is the case. Beyond that chance I think you will just have to pay the taxes, and that one is real marginal. Possibly you can 1031 exchange into the new property (essentially this is a property exchange where taxes are deferred until you sell the newly purchased property) and avoid the tax. Still to do a tax-deferred exchange the property being bought must be the same kind of property as the one being sold. The IRS doesn’t clarify very well what “same kind” means, but it still doesn’t sound like this is the case.

Beyond that chance I think you will just have to pay the taxes, and that one is real marginal.

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