Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 4 years ago on . Most recent reply

User Stats

112
Posts
126
Votes
Ross Bowman
  • Investor
  • Charleston, SC
126
Votes |
112
Posts

I don't really want to 1031. Am I wrong?

Ross Bowman
  • Investor
  • Charleston, SC
Posted

I'm selling a property and I'll only owe approximately $4k in taxes on it. 

I spoke to a QI who quoted me around $1500 to do a 1031.

I generally try to *legally* avoid giving the government tax money, whenever I can avoid it. 

But I'm actually not crazy about buying anything right now or pressuring myself to pick up a so-so deal. Our market is very hot and margins are thin here. I could try and find something off market, but I'm not full time in RE yet, so it's 50/50 I'd even find one in time. I still have a full time W2 job, and I'm not sure I want to box myself in. 

Even though paying taxes unnecessarily is almost sacrilege in real estate, is it bad if I just eat the tax? I'd still be in the green. This was my first property and really just a learning experience. 


Most Popular Reply

User Stats

1,250
Posts
1,405
Votes
Salvatore Lentini
  • Rental Property Investor
  • Doylestown, PA
1,405
Votes |
1,250
Posts
Salvatore Lentini
  • Rental Property Investor
  • Doylestown, PA
Replied

@Ross Bowman - 1031 is just a tool not a rule :)  Do what makes sense for YOU!

Loading replies...