1031 and FIRPTA

[Gilles D.]

Hi everyone!

I am close to listing one of my properties that thankfully has appreciated a bunch over the past couple of years.

A couple of things I was wondering about in regards to the sale of this property, I plan on a full 1031 exchange:

1) Since I am a foreign investor, does FIRPTA still come into play with a full 1031? Or are you exempt as long as it's a full 1031?

I've received conflicting information therefore I want to make sure.

2) Is filing an 8288-B form a guarantee? (if the mentioned above does not count)

I know you can deposit the 15% with the settlement agent but it's close to 200K, which I do not have laying around I'm afraid.

3) There was a legal issue in regards to this property, with an outstanding balance of 100K to be paid, can this be paid off through the sale, and still count as a full 1031? Or would that mean I get taxed on a boot of 100K, which in return would get cancelled out because I had a 100K expense?

Thanks in advance!

[Wayne Brooks]

@Dave Foster can probably help. What exactly is the $100k for? If it is a lien, I’d think it would qualify.