I have a commercial/residential property in upstate New York that I want to put on the market. 75% of the property here is owned by non-residents.

Q: I have a commercial/residential property in upstate New York that I want to put on the market. It was built in 1892 as a railroad hotel and boarding house. The location is terrific. 75% of the property here is owned by non-residents, most of them from outside areas. Is this something you may potentially be interested in listing?

A: When selling a property held for business, trade or investment, you must carefully consider how you will deal with the gain.  A 1031 exchange, if executed properly, enables the seller to “defer” the gain until later, but it is imperative that the seller carefully construct the transaction to accomplish this.  Be sure to use an experienced attorney who has done 1031 exchanges in the past to ensure that your goals are met.