Questions on 1031 exchange.
1.I am selling my restaurant and in the process of building another one.
My current restaurant is operating as an S Corp... The price allocation indicates that Furniture, Fixtures and Fittings (FF&E)..is .say 50k, then can I defer my gains on the FF&E by using the funds to buy FF&E in the new restaurant that I am building?
I heard that since my business entity is an S Corp, it cannot be done. Does entity have anything to do with a 1031 exchange?
Can anyone please help me out here?
- If I cannot do a 1031 exchange, what is the Tax Rate that I will have to pay on the gains? (Is it long term Capital gains tax rates?) The FF&E were purchased and installed over 5 years ago.
Thanks,
Ava