Selling Rental in Calfornia but Live in UK

[Dave Newgass]

Hello,

I recently inherited a piece of rental property that's located back home in California but I live in the UK.  I am looking to sell the property though so I can invest it in property here in the UK.

Can I do a 1031 exchange by purchasing property in the UK with the money from the sale of the rental?  Obviously, I want to pay as little tax on the sale as possible but don't know how to go about this.

Any thoughts?

Many thanks,

Dave

[Dave Foster]

@Dave Newgass, If you recently inherited the property you should receive a step up in basis from the estate.  That means that you inherit the property as if you purchased it for market price.   So if you sell you would not have any or much of a taxable event.  The executor of the estate and your accountant can verify for you.  No need for a 1031.  No need to keep the money in the US.