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Updated over 6 years ago,
Selling a property acquired through a 1031 exchange
I'm considering the sale of a property I acquired in 2014 through a 1031 exchange. I would be doing a straight sale, not another 1031 exchange. I'm having trouble finding a formula to help me figure out what the tax implications might be. If anyone has a formula or spreadsheet to share, that would be much appreciated.
I guess where I'm the most confused is regarding where the deferred gain and depreciation taken on the relinquished property get figured in. Are these both already factored into the adjusted cost basis of the replacement property?
Also with the current (replacement) property, how do I factor in the depreciation taken? I know I'd pay 25% of it as recapture, but does it get added or subtracted in the formula for figuring out gain? I've tried using several online 1031 calculators but no 2 seem to be the same, and none of them deal with selling a property that was acquired through a prior 1031.
Thanks in advance for your help!