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1031 Exchanges
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Updated over 4 years ago on . Most recent reply presented by

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Sayantan Satpati
  • San Jose, CA
9
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19
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Reverse 1031 Exchange

Sayantan Satpati
  • San Jose, CA
Posted

Hi, 

I have a property A (rental) and property B (primary residence). I am planning to buy a new primary residence C, rent out B, and sell A. However, selling A would mean paying taxes on capital gains. Is there a way I can use 1031 reverse exchange and use the proceeds after selling A to pay down a part of the mortgage in B?

Most Popular Reply

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23,418
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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
13,508
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23,418
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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
Replied

No...a 1031 requires you to Buy replacement property and use All the cash generated from your sale for that purchase. 

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