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Updated over 4 years ago on . Most recent reply
a complex situation, please help!!
Hello
Let's say a new home I am trying to buy is A, rental property is B and the home I am pulling down payment from is C.
I have significant amount of equity in B but instead of selling it to buy A, I am using the equity from C as a down payment. In normal situation, 1031 exchange would work perfectly here if I sell B first and buy A but my situation is the opposite; I will be buying A "first" with anticipation to sell B if tenants decide to move out, and it is a dilemma.
Again, I need to buy A 1st and sell B later. And once B is sold, I will use the proceeds to pay off A.
I am only doing this because I need to buy A quick and don't want to go through the hassle of selling B first.
Does this make sense? If not, any creative ways to make this work without tax consequences later on?
Or better ways to go about this? Any broker out there?
Someone please answer. Thank you