Cash out and improvement should equal out?

[Tommy Sowell]

I'm doing a 1031 exchange from San Diego to Hawaii and I need a little cash to fix my new properties. If I take $5k  cash out of the exchange and spend $5k on improvement on new property would the $5k income from the exchange and the $5k tax deductible improvement equal out on my taxes next year?

Thank You

Tommy

[Dave Foster]

@Tommy Sowell  Got it.  There might be a way to include some small repairs into the exchange either with seller cooperation.  Your QI should be able to give you a couple of options if the amount is less than 15% of the sales price.