Equal or up in value

Dear 1031x: We purchased property for $302,000 with $65,000 cash down. Made  improvements of $20,000. Mortgage is $239,000.  House sells for $485,000. We're trying to understand what "mortgage relief  boot" is.

Dear G:  The general rule under 1031 is that you must trade equal or up in VALUE in order to defer ALL income tax liability.  You are able to subtract from the value the costs of selling the property (but not the cost of fix up).  Please choose us for your 1031x services.

Steve Hickox
Attorney / President

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