Wrapping my head around 1031s

[Michele G.]

We are planning on selling a SFH rental this year. We have a ton of equity in the property so I am trying to learn about 1031s. Here’s what I calculated using rounded numbers: Cost 150 Cap impr 70 Depr 105 Basis 115 Sales Price 575 Closing costs 40 Cap Gain 420 Depr recapture tax 26 Cap Gain tax (20%) 84 Current loan 200 Am I calculating this correctly? Are we really facing somewhere around $100k in taxes if we don’t do the 1031? What type of property (numbers wise) do we need to be considering in order to avoid paying capital gains? Can we buy 2 properties or does it have to be 1? Does that delay all of the tax due (Depr recapture & cap gains)? What happens when we sell the next property? Do the gains (tax owed) from Prop A keep carrying forward to subsequent properties as long as we follow the rules & invest up? My husband is really concerned about the timeframe. How do we make sure we do all of the steps in the right order at the right time? Is that where the intermediary comes in or is that our realtor’s job? We also have another property with similar numbers. Would it be beneficial for us to consider doing the same with that property?Is there any tax benefit/downside to holding a rental that is fully depreciated? I think that’s all I have for now. I will be spending my foreseeable free time trying to catch myself up on 1031s.