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Updated almost 5 years ago on . Most recent reply

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2
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Jesse P.
  • Real Estate Agent
  • Santa Cruz, CA
0
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2
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1031 Exchange into TIC with Family member

Jesse P.
  • Real Estate Agent
  • Santa Cruz, CA
Posted

Can I 1031 a property and purchase a fractional interest (TIC) in another property a family member currently owns?

I would clear $300K from the relinquished property sale of $700k.

The replacement property has appraised for 1.25m and has a mortgage of $825k

-If possible, are there restrictions on how the $300K from the relinquished property is used? For example, could $100k be used for delayed maintenance and the residual to pay down the mortgage?

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