1031 Exchanges and Carryover Capitol Gains/Losses

[Craig Clark]

Hi Bp, 

We are looking to sell a few under performing properties next year so we can redeploy the equity into better investments and we had some questions.   Yes, we are going to talk to our CPA but we are filling out our options. 

We have Carryover losses from the previous tax year.  

Can carryover losses be used to offset some of the capital gains from the sell of the property.  We are not going to shy away from a 1031 but  we just want to make sure going through the hassle of the 1031 process makes sense for us.   

For example, if we have carryover losses of $50,000 but receive a net capital gain of $55,000 and those losses can be used to offset the net gain, doing a 1031 for the extra $5,000 doesn't seems worth it. 

Anyone one have any thoughts and/or links to IRS guidelines they could share. 

Thanks