The 1031 Exchange Institute

Welcome to The 1031 Exchange Institute™. The 1031 Exchange Institute is your complete online resource for 1031 exchange, 1033 exchange, 1034 exchange, 721 exchange, 453 installment sale and 121 exclusion information.  Information will also be provided regarding Self-Directed IRAs, including Traditional IRAs, ROTH IRAs, SEP-IRAs and SIMPLE IRAs. 

The 1031 Exchange Institute is dedicated to educating and informing real estate investors and their advisors on the benefits of 1031 tax-deferred exchanges and other tax deferred and tax exlcusion strategies so they can make better informed investment decisions.

1031 Exchange Discussion Forum > Inherited Property for 1031 Exchange ?

My mother deeded her house to my brother and me about 8 years ago but kept a life estate. She passed away 13 months ago and we have been renting it out since. We are now going to sell it. Would the tax value be its value when transferred - $ 150k or when she died - $ 200k ? Can I delay taxes by doing a 1031 exchange and using the proceeds to buy an investment property ? Thanks.
January 8, 2013 | Unregistered Commentersteve
Since she deeded the house to you before she passed, the cost basis in the property would be your mother's cost basis at the time that she deeded the property to you. Her passing does not affect the values since she had already deeded the property to you.

You have held the property as rental/investment property for over 12 months, so you and your brother would certainly qualify for 1031 Exchange treatment.
January 8, 2013 | Registered CommenterStaff