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Capital Gains and 1031

By Terry Savage on December 31, 2021 | Taxes & Economy

Hey Terry,
If you sell stock and have a lot of Capital Gains to pay can you roll into a 1031 to buy land? Thank you for your help. God

Terry Says

Sorry, but no. That kind of “exchange” is mostly reserved for real estate or other limited properties. Here’s the definition of a 1031 Exchange:
A 1031 exchange gets its name from Section 1031 of the U.S. Internal Revenue Code, which allows you to avoid paying capital gains taxes when you sell an investment property and reinvest the proceeds from the sale within certain time limits in a property or properties of like kind and equal or greater value.

In the case of stocks, if you buy a similar or same security within 60 days, you are in violation of the “wash sale” rule.



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