Farzad K, Home Buyer in Toronto, OH

Can a C-Corpration sell its property and buy another one taking advantage of 1031 Exchange to defer capital gain tax?

Asked by Farzad K, Toronto, OH Fri Dec 23, 2011

Assuming the property is sold at a profit so capital gain is created and the C-corp wants to buy a like kind property which is more expensive.

Help the community by answering this question:


Whether a living soul, C-Corp, S-Corp, LLC or private ventured schedule C business the tax code does not differentiate between the living and non-living. The Code refers to all entities as a natural person under the law and therefore any entity can benefit from the IRC Sec 1031 if a taxable entity. Tax deferred entities and Pensions, 401(k), SEP IRA already enjoy the same effects of the IRC Sec 1031 within the plan design.
1 vote Thank Flag Link Fri Dec 23, 2011
Have you searched online? Most Realtors are not adequately trained in legal an tax issues.

Found this:


According to the above, C Corps are okay to do 1031 Exch as long as the title is kept exactly the same on the new property.

Hope this helps!
All the best,
0 votes Thank Flag Link Fri Dec 23, 2011
I'm not an expert on 1031:
I undersdtand that they create an LLC for the exchange to insulate the principles.
I guess the LLC would become a subdivision.
You can see why the Asset Company and the Attorney would have to be involved.
Please do not draw us into Legal questions that we are not allowed to answer; save them for the Asset Manager.

Good luck and may God bless
0 votes Thank Flag Link Fri Dec 23, 2011
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