1031 exchange:
More on Capital Gains
Comments: I have a property that is worth 300k and originally paid 29k.This leaves a 271k gain. Question: Can I pull the 29k from the sale without being taxed.
The general rule to fully defer capital gain in a 1031 exchange is that you must trade equal or up in value and in equity. Equity is created by your down payment, gradual reduction in loan amount and appreciation. When you sell it doesn't matter how the equity is created, if you take sale proceeds out it will be treated as taxable capital gain and not as return of your original investment. Sorry.
Sincerely,
Steve Hickox
Attorney / President
FAQs
Capital Gains Tax Example An example of how capital gains is estimated in a ...Read More
Can I exchange a business--UPS Store Example It is possible to exchange a business-but there ar ...Read More
Capital Gains State Tax Rates Find the Capital Gains Tax Rate for your state! ...Read More
How Often can I take Advantage of the Tax Exclusion Under IRC section 121? 121 tax exclusion ...Read More
200 Percent Identification Rule What if the property value increases? Is the ID v ...Read More
Subdividing question Can I subdivide? ...Read More
Tax Free Cash How can I take cash out? ...Read More
Capital Gains Exclusion??? Mixing up Section 121 and Section 1031 ...Read More
More on Capital Gains Question about Capital Gains. ...Read More
Taking Cash Out of a 1031 exchange What about taking cash out of a 1031 exchange? ...Read More
Accumulated Depreciation How do I handle depreciation? ...Read More
Lease Options How do I handle rent money? ...Read More
Dual Use of Property Primary residence and? ...Read More
