By Steve Tytler
Columnist
Q I would like to know if it's possible to sell 20 acres of rental property with a house out of town, divide the profit and reinvest in two rental houses near my home in Lynnwood without paying capital gains.
G.D., Lynnwood
AYes, you can use a tax-deferred exchange to accomplish the rollover, but you have to be very careful to the follow the tax rules to the letter.
Section 1031 of the Internal Revenue Code allows you to roll the profits from property held for investment or used in a trade or business into like kind replacement property. Like kind simply means that the replacement property must also. . . full story here.
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