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Updated over 2 years ago,

User Stats

105
Posts
102
Votes
Wilson Vanhook
  • Rental Property Investor
  • Oklahoma City
102
Votes |
105
Posts

How to avoid taxes on a partnership with 1031 exchange

Wilson Vanhook
  • Rental Property Investor
  • Oklahoma City
Posted

I have a very specific unique situation on hand. I'm doing a 1031 exchange from one property of mine to a new rental. I have somebody who would like to partner with me on the new rental property. To avoid taxes my plan was to fund the full amount of the down payment on the new property from MY 1031 exchange funds, and then have my partner pay me their half after the fact. Is there any way for my partner to pay me a large sum of money (~$50k) without me being taxed on receiving the money from them in this scenario?

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