1031 Holding Period

[Ian Middleton]

I looked for the answer to this question in the various threads but could find an unequivocal response, so for the avoidance on any doubt here is my situation/question. I purchased a fixer property for all cash around 5 yrs back (costs all in of 140k and sold for 215k in TX), sold it and did a 1031 into a SFR all cash purchase just over 2 yrs back. Second property purchase price was 275k (so added some other funds to make up the total figure), and potentially looking to sell around 315k. Assuming this is the case (and excluding agents fees, costs etc) would the capital gains tax on the second property be 40k (gain since the purchase 315k-275k), or would there be some kind of recapture from the first 1031 exchange. Thank you very much in advance.