1031 a Primary that is Paid for?

[April Birdsong]

Can you do a 1031 on a primary that is paid for? I am a new investor looking at all of my options as I plan to purchase within next 3-6 months.

Thanks for everyone's help with my questions. This is an amazing community. 

April from Georgia 

[April Birdsong]

Quote from @Bill B.:

Unless you have over $250k ($500k if married) not only can’t you do a 1031 you don’t want to. A 1031 defers a tax, your primary sale is tax free up to those limits. 

If you have waaaaay more than those limits. You can move out, rent the property for a year or two and then sell the property. You take the $250-$500k in gains tax free and then do a 1031 of the remaining funds. 

Again, we’re talking gains not sale price. (Net sales price after all selling costs minus purchase price and any capital improvements)

ps. Whether you owe nothing or more than the property is worth has nothing to do with the gain or the taxes due. 

That makes sense.  I am learning and trying to figure out how to best leverage what I have to begin my investment journey.
Thanks so much