If I sold my business with a capital gain,Can I buy another one to eliminate the capital gain of the first sal

the business I bought is more money than the business I sold
In Buying Property - Asked by Martin D. - Jan 17, 2010
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Answer(s)

Sue F.
Broker/Agent
Boardman, OH

Did you buy an actual business or real estate property?

Jan 22, 2010
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Greg K.
Broker/Agent
Elk Grove, CA

First, you can never eliminate taxes, you can only postpone recognition (i.e. payment) of the tax on your gain. It gets a bit more invoved after that - the best thing you can do is consult a tax accountant/attorney active in exchanges. Some of the issues you will deal with include: is all the gain on "good will" or do components of the gain include personal property (equipment, fixtures, etc.) or real property? Are securities involved (did you sell the business or the common stock of the business)? Have you provided "owner fiancing" for part of the sale price? All of these issues, and probably more, will have a bearing on whether all or any part of the sale can benefit from gain tax deferrral treatment under IRS Sec 1031, otherwise known as an exchange.

Jan 26, 2010
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Maxim B.
Owner/Investor
Jacksonville, FL

This sounds like a 1031 exchange. U can do reverse or regular exchange. You can't do the sale yourself, you shall never tough the proceeds and the proceeds from the sale go to intermediary (shall be a qualified exchanger). Then, you got 45 day to identify the new business and 180 to close. Sell/buy only apples for apples.

Jan 29, 2010
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