Posted by Michael Morrongiello on October 29, 2001 at 13:20:03:
Chris:
You really need competent Tax advice here…
If I understand you correctly, you have sold a property that you owned personally and was used for investment purposes by taking advantage of IRC section 1031. The proceeds of the sale of this investment property must be held by a third party so that you do not have “constructive receipt” of these funds…
Now, you wish to designate or “target” a replacement investment property or two, three, etc. so that you can complete your tax defferred exchange…
At the very least you may be able to complete your exchange into the new replacement property(s). and then look into doing what is known as a “Capital Contribution” of this asset to the corporation that you have set up. This is one way you can probably get the title to the property and the asset into a corporate entity. As for whether or not you will be charged “for the gains”… That is for the tax practioner to address or perhaps you can direct this issue further to John Hyre Jhyre@bright.net who I believe deals on a regular basis in tax matters.
To your success,
Michael Morrongiello