Tuesday, August 17, 2010

After a 1031 exchange, how is any cash {boot) taxed if rental property held for many years? Long term gain ?

The exchange did not leave enough money (after several properties were exchanged) to make additional purchase so balance of $ received in cash.

After a 1031 exchange, how is any cash {boot) taxed if rental property held for many years? Long term gain ?
You are correct. You recognize long-term capital gain to the extent of boot received.
Reply:Boot is current income


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