1031 Exchange | Title Holding Trust | Deferred Sales Trusts | 1031 Investment Real Estate | 1031 Exchange Strategies and Structures | Reverse Exchange | 1031 TIC Investment Property | Tax Deferred Exchange Replacement Property

Sec 121 and Sec. 1031 are separate, right...?

Last post 07-25-2008 9:11 AM by tfolkers. 1 replies.

Page 1 of 1 (2 items)
	Sort Posts: Previous Next

07-25-2008 5:32 AM

woody
Joined on 07-25-2008
Newbie
Points 35

Sec 121 and Sec. 1031 are separate, right...?

Reply Contact

excuse my ignorance...

but assume my residence qulified for a Sec. 121 sale (married, lived there 5 years as residence, etc.)

we can exclude up to $500,000.00 gain on sale of our personal residence, PLUS

do a Sec. 1031 exchange on our tree farm as well?

the "sale of personal residence Sec. 121" is completely separate and apart from a Sec. 1031 exchange of business/investment realty, right?

SOUNDS TOO GOOD TO BE TRUE!

Post Points: 5

07-25-2008 9:11 AM In reply to

tfolkers
Joined on 07-23-2007
Irvine, CA
Junior Member
Points 124

Re: Sec 121 and Sec. 1031 are separate, right...?

Reply Contact

Woody - yes you are right. Each transaction stands on it's own and the sale of the personal residence would qualify under Sec. 121 and the tree farm under Sec 1031. And yes you can do both transactions in the same year with no problem.

This is one case where it is both good & true.

Regards,

Timothy J Folkers, CPA
Principal
Folkers, Choi & Associates
An Accountancy Corporation
18818 Teller Ave., Suite 109
Irvine, CA 92612
(949) 399-1040 ext 126 -Direct
(949) 399-1041 fax
Tim@FCA-CPA.com
www.FCA-CPA.com

TAX ADVICE DISCLOSURE

To ensure compliance with requirements imposed by the IRS under Circular 230, we inform you that any U.S. federal tax advice contained in this communication, unless otherwise specifically stated, was not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any matters addressed herein.

Post Points: 1

Page 1 of 1 (2 items)