TransWikia.com

1031 exchange and cash boot

Personal Finance & Money Asked on May 16, 2021

My question is about 1031 exchange and whether I can get rid of the mortgages from my life once and for all, by investing only with the equity I got? Looks like this great idea is not possible.

The question is: Can the replacement property be around 400K, or is it that it must be worth 850K, and I must end up with a new 450K mortgage?

One Answer

The key element of a 1031 is that you are replacing the property with on at least as expensive. Any cash pulled out creates tax issues.

Answered by JTP - Apologise to Monica on May 16, 2021

Add your own answers!

Ask a Question

Get help from others!

© 2024 TransWikia.com. All rights reserved. Sites we Love: PCI Database, UKBizDB, Menu Kuliner, Sharing RPP