Can I do a 1031 with the capital gains portion of the Sale......

[Steve Hungerford]

Hello,

I have a property with a lot of capital gains that I wanted to use some of the basis portion (basis plus the 250K exclusion) to buy a SFR.

If so how do I do that ? Can I use the amount I believe is the capital gains for the 1031 and take the basis (purchase price, plus improvements, 250K exclusion-section 121)

I was told I could but I need more clarity.

[Bill B.]

Are you trying to get help or start a fight?

You do understand any 1031 QI you chose SHOULD answer all your questions or you should choose another one. Especially if you’re making decision with huge financial decisions based on the words of non-expert strangers on a free website. 

You say you’ve read and studied the process. So you know you have to spend more than your net sales on the new property. The capital gains portion doesn’t matter at all. If you sell a $1,100,000 property and after selling costs you net $1,000,000. It doesn’t matter if you paid $999,000 or $100,000, you have to buy a new property that costs more than $1,000,000.  It doesn’t matter if you owned it outright or had a loan for a $1,000,000. (Other than the fact you have to reinvest all cash received obviously.)

You also know that a personal residence can’t be 1031’d unless it was also a rental before sale, so the $250k exclusion wouldn’t apply unless it was both a primary and a rental. But you refused to answer that question or provide any details, so please talk to your 1031QI. I understand you’re new to BP (or you’d know who @Dave Foster is and why he could help you) but read your post as someone asking you for help about something you’re an expert and listen how you come off insulting, petulant, and demanding all while being unwilling to answer questions while asking for help.