1031 Exchange, then sell in one year?

[Leland Dunn]

We are in the process of a 1031 exchange. Sold an investment property for $285 (140k profit), buying another for $245k (pay capital gains on the 'boot).

My Question is, can we hold this rental for a year then sell it for say $260k and only pay the capital gains on the profit from this new house? There's no way we would pay the capital gains on the current purchase (capital gains on over 100k would hurt). But since we are buying this house, hold it for a year plus, then sell it the capital gains will not be bad at all (say 10-20k, or maybe 0).

Thanks Community

[Jim Carney]

Once you cash out of your 1031 you pay the past gains.