Michael submitted a question through the Ask The 1031 Expert feature on the Atlas 1031 web site. The question centered upon whether the sale of rental property owned in Australia could defer capital gains in a 1031 exchange by purchasing replacement property in the United States. The Omnibus Budget Reconciliation Act of 1989 added subsection (h)(1) of Section 1031 stating that real property located in the United States and real property located outside the United State are not property of like kind.
Within six minutes of submitting the question, our Certified Exchange Specialist® called Michael to listen and respond to his questions. An estimated capital gain tax was calculated along with a suggestion to confirm with his CPA whether Australian capital gains will offset US capital gains.
Testimonial
“Andy, you and your firm are awesome. I did not expect that somebody would call me and explain 1031 exchanges in the detail and that is without any charge. I really appreciate your help and guidance. In the future, if I need the service, you will be the first person I will call and I will not hesitate to refer you to any of my friends and family. Thanks once again.”
Michael Patel
Raleigh, North Carolina