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Updated almost 3 years ago,
2 simple questions on 1031 exchange
I sold a rental for $430,000 and deducting commission , closing help and transfer taxes were about $30k So, I am at $400,000 after deducting expenses of the sale.
Question 1- Do I need to buy $400k in total replacement properties or $430k? (I'm going to assuming it's $400k for my remaining questions)
I am nearing the end of my 45 period to identify replacement properties. I have already purchased and closed on 1 property for $160k. I had to post the deposit of $15,000 of my own money (not from my QI) and while I realize I could have gotten credit back on the closing statement for that deposit I did not. So, the QI sent $145k to close on the $160k property.
Question 2- Does this property count as $145k toward my $400k replacement amount or $160k?
I'm having trouble finding properties to buy so I am going to use to 200% rule to identify property I may purchase. over the next few months. ( Again assuming the answer to you first question is $400k) I have $800k worth of property I can identify.
Question 3- Does this first property I have already closed on come off the the $800k even though I have already closed? Meaning I now only have $740k worth of properties I am allowed to identify? Or since I already closed to I still get to identify $800k worth of property?
Sorry that was 3 questions!! Thanks for your help in advance