If the investor does not move forward with an exchange, then the transfer of property is a sale subject to taxation.
An investor that holds property longer than 1 year will be taxed at the favorable capital gains tax rate. Otherwise, the sales gain is taxed at the ordinary income rate.
Here is a capital gains calculator to illustrate potential taxes if you sell your property rather than exchange.
Designed by Availent Technologies LLC. Copyright Equity Advantage Incorporated 2006. All rights reserved.