1031 Exchanges
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Updated over 4 years ago on .
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Reverse 1031 Exchange
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?
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Wayne Brooks
#1 Foreclosures Contributor
- Real Estate Professional
- West Palm Beach, FL
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No...a 1031 requires you to Buy replacement property and use All the cash generated from your sale for that purchase.