Is a 1031 Exchange my best option im my case???

[Edem Dosseh]

Hi, I currently have a property that I've bought a few years back with my brothers but was financed by just myself (It was easier to get the loan that way). Fast forward to now we have established an LLC and purchased a fixer upper CASH but need to sale the initial house to make the repairs. We might be able to make close to a 100 grand after paying the small leftover mortgage. How do I proceed to avoid the taxes for now? I read about 1031 exchanges but not sure if I can use it to our advantages. If not what else would you suggest? The sale wont happen for a while now so I have time to do all kind of maneuvring to make the right move tax wise at least. Please advise. Thanks

Rookie investor

[Johnny Rhee]

If it's a rental property, you can do a 1031 but I believe it must be used on the purchase of the property not on the repairs. You need to hire on a 1031 exchange accommodator to properly execute the exchange.