1031 Exchange and Capital Gains

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Name:Steven Hickox
Location:Denver, Colorado, United States

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Monday, November 28, 2005

1031 exchange sale without repurchase

I live in Japan.   I have been here for 7 years.  I have a townhouse in  California that I have a loan on.  I'm building a home in another part of  the state and have taken a 2nd out on my town house to finish paying off  the new house.  I would like to sell the townhouse to complete payment on  my new house.  Do I have to pay capital gain tax.
Dear G:  Unfortunately your question can be answered in one word. YES.  Remember gain realized and size of mortgage have little or nothing to do with each other.

Steve Hickox
Attorney / President

posted by Steven Hickox | 1:37 PM