1031 replacement property question

[Mark Delgado]

Hi everyone,

I'm selling a SFR and intend to complete a 1031 exchange into something else. Does the replacement property sales price need to be higher than what I sell the SFR for? Or can I buy a property that has a lower sales price, but that sales price is high enough so that I can invest all my profits into that and be ok?

[Mark Delgado]

Originally posted by @Bill B.:

You have to “spend” or pay more than you net from the sale. (EX: Sale price $100k minus $5k in commissions with $2k in closing costs means you have to spend at least $93k AND all “cash” you receive.)

It doesn’t matter how much you paid, how much it appreciated, or how much you owe.

Thank you for clarifying, Bill. I really appreciate it!