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In December, I sold my six-unit apartment building. The cash is being held in a separate account at the bank. Am I correct that I have 12 months to reinvest this money without having to pay tax on it?
No. Whoever gave you that information is wrong. Unless you made an Internal Revenue Code 1031(a)(3) Starker delayed tax-deferred exchange with the sale proceeds held by a third-party intermediary accommodator, such as a bank trust department, your sale profit is taxed as long-term capital gain since you have access to the sales proceeds. Consult your tax adviser for more details.
