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1031 question
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Jessica
May 11, 2017, 2:05:52 PM5/11/17
to
In a 1031 exchange.....
so that I do not have to pay any Capital Gains Taxes
do I have to reinvest ALL of the sales proceeds in a 1031 exchange?
In other words...
If the property is sold for $400,000 and the mortgage on it is $150,000, then what is the amount that I should re- investment so I do not have to pay any Capital Gains Tax?
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so that I do not have to pay any Capital Gains Taxes
do I have to reinvest ALL of the sales proceeds in a 1031 exchange?
In other words...
If the property is sold for $400,000 and the mortgage on it is $150,000, then what is the amount that I should re- investment so I do not have to pay any Capital Gains Tax?
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
Arthur Rubin
May 12, 2017, 12:57:44 AM5/12/17
to
On Thursday, May 11, 2017 at 11:05:52 AM UTC-7, Jessica wrote:
> In a 1031 exchange.....
>
> so that I do not have to pay any Capital Gains Taxes
> do I have to reinvest ALL of the sales proceeds in a 1031 exchange?
>
> In other words...
>
> If the property is sold for $400,000 and the mortgage on it is $150,000, then what is the amount that I should re- investment so I do not have to pay any Capital Gains Tax?
If the property is "sold", it does not qualify for a 1031 exchange....
> In a 1031 exchange.....
>
> so that I do not have to pay any Capital Gains Taxes
> do I have to reinvest ALL of the sales proceeds in a 1031 exchange?
>
> In other words...
>
> If the property is sold for $400,000 and the mortgage on it is $150,000, then what is the amount that I should re- investment so I do not have to pay any Capital Gains Tax?
In general, in order to qualify for a 1031 exchange, the property you receive should have at least the same value as the property you give up.
--
Arthur Rubin, CRTP
Brea, CA
Taxed and Spent
May 15, 2017, 11:51:04 PM5/15/17
to
On 5/11/2017 9:53 PM, Arthur Rubin wrote:
> On Thursday, May 11, 2017 at 11:05:52 AM UTC-7, Jessica wrote:
>> In a 1031 exchange.....
>>
>> so that I do not have to pay any Capital Gains Taxes
>> do I have to reinvest ALL of the sales proceeds in a 1031 exchange?
>>
>> In other words...
>>
>> If the property is sold for $400,000 and the mortgage on it is $150,000, then what is the amount that I should re- investment so I do not have to pay any Capital Gains Tax?
>
> If the property is "sold", it does not qualify for a 1031 exchange....
Here we go again. It depends on who is doing the selling - a qualified
> On Thursday, May 11, 2017 at 11:05:52 AM UTC-7, Jessica wrote:
>> In a 1031 exchange.....
>>
>> so that I do not have to pay any Capital Gains Taxes
>> do I have to reinvest ALL of the sales proceeds in a 1031 exchange?
>>
>> In other words...
>>
>> If the property is sold for $400,000 and the mortgage on it is $150,000, then what is the amount that I should re- investment so I do not have to pay any Capital Gains Tax?
>
> If the property is "sold", it does not qualify for a 1031 exchange....
intermediary can "sell" as part of a 1031 transaction.
>
> In general, in order to qualify for a 1031 exchange, the property you receive should have at least the same value as the property you give up.
principal residence exemption.
Stuart O. Bronstein
May 16, 2017, 12:16:13 AM5/16/17
to
Taxed and Spent <nospam...@nonospam.com> wrote:
someone sells, general to third persons. It's not actually what most
people would call a trade.
>> In general, in order to qualify for a 1031 exchange, the property
>> you receive should have at least the same value as the property
>> you give up.
>
> What exceptions are there? One is if the property still qualifies
> for a principal residence exemption.
Sort of. Technically you can qualify for a 1031 exchange even if the
property you buy has a price lower than the property you sell.
However you just need to recognize the difference as taxable income.
In the case of a property that can qualify for the principal
residence exemption, there's still taxable income, but another
exemption that applies.
--
Stu
http://DownToEarthLawyer.com
> Arthur Rubin wrote:
>> Jessica wrote:
>>> In a 1031 exchange.....
>>>
>> Jessica wrote:
>>> In a 1031 exchange.....
>>>
>>> If the property is sold for $400,000 and the mortgage on it is
>>> $150,000, then what is the amount that I should re- investment
>>> so I do not have to pay any Capital Gains Tax?
>>
>> If the property is "sold", it does not qualify for a 1031
>> exchange....
>
> Here we go again. It depends on who is doing the selling - a
> qualified intermediary can "sell" as part of a 1031 transaction.
Right. Technically it's considered a trade, but someone buys and
>>> $150,000, then what is the amount that I should re- investment
>>> so I do not have to pay any Capital Gains Tax?
>>
>> If the property is "sold", it does not qualify for a 1031
>> exchange....
>
> Here we go again. It depends on who is doing the selling - a
> qualified intermediary can "sell" as part of a 1031 transaction.
someone sells, general to third persons. It's not actually what most
people would call a trade.
>> In general, in order to qualify for a 1031 exchange, the property
>> you receive should have at least the same value as the property
>> you give up.
>
> What exceptions are there? One is if the property still qualifies
> for a principal residence exemption.
property you buy has a price lower than the property you sell.
However you just need to recognize the difference as taxable income.
In the case of a property that can qualify for the principal
residence exemption, there's still taxable income, but another
exemption that applies.
--
Stu
http://DownToEarthLawyer.com
VinnyB
May 16, 2017, 7:56:25 AM5/16/17
to
On Thu, 11 May 2017 14:00:52 EDT, Jessica <glori...@gmail.com>
wrote in <d4eaaffd-d130-4fbf...@googlegroups.com>
>In a 1031 exchange.....
>
>so that I do not have to pay any Capital Gains Taxes
>do I have to reinvest ALL of the sales proceeds in a 1031 exchange?
>
>In other words...
>
>If the property is sold for $400,000 and the mortgage on it is $150,000, then what is the amount that I should re- investment so I do not have to pay any Capital Gains Tax?
$400,000 should be reinvested.
wrote in <d4eaaffd-d130-4fbf...@googlegroups.com>
>In a 1031 exchange.....
>
>so that I do not have to pay any Capital Gains Taxes
>do I have to reinvest ALL of the sales proceeds in a 1031 exchange?
>
>In other words...
>
>If the property is sold for $400,000 and the mortgage on it is $150,000, then what is the amount that I should re- investment so I do not have to pay any Capital Gains Tax?
lotax
May 17, 2017, 5:00:05 PM5/17/17
to
AND .. not less than $250,000 [$400,000 minus the $150,000] of the "reinvestment" should be "in cash" i.e. not borrowed.
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