Can I exchange a property that was my replacement property from a pervious exchange?
Yes, you may continue to postpone the recognition of gain on any property regardless if it was acquired from an earlier exchange. The last property acquired will pass to your heirs at a stepped up basis equal to the current fair market value and your heirs may sell the property for cash at the new basis with out recognition of any of the previous deferred gains.
Related Questions
- UNDER A DEFERRED EXCHANGE, WHEN MUST THE REPLACEMENT PROPERTY BE IDENTIFIED (AND SUBSEQUENTLY ACQUIRED BY THE EXCHANGOR)?
- What happens if the taxpayer changes their mind about buying a replacement property and wants to cancel the exchange?
- How must title to the replacement property be held in a reverse exchange?
