1031 Exchange-FL Sale Invest Property to TX Invest Property

[Juan Ayala]

BP Family,

Seeking some unofficial advice and definitely plan on validating with a CPA before execution. I have a property in Florida that i am trying to avoid paying CGT on. I would like to do a 1031 exchange and purchase another investment property in Texas. The property in Florida will sell for about $200K and i owe about $100K on it. My plan is to take those gain and purchase another investment property in Texas for about $100K. Since i am taking the gains and putting the complete amount into another investment property, will i meet the requirement of the like kind exchange? Any advice on this would be very much appreciated.  THANK YOU IN ADVANCE!

[Jim Cummings]

@Juan Ayala. Simple Answer - YES! There are additional steps you need to take. I.E. Need to Identify the property you plan to Purchase within 45 Days, and close within 180 Days, and numerous others. 

Before you do anything, suggest you pick a 1031 Exchange Company to handle the exchange for you, so they can counsel you on the exact procedures. There is an exact prescribed process to follow and if you deviate from the process you might end up paying Capital Gains Tax on the proceeds of the sale. 

There are several 1031 Exchange Experts on BP - perhaps @Dave Foster or one of the others will chime in with more details.