All Forum Posts by: Andrew C.

I have never sold a property that I've previously 1031'd into. I am confused on how to think about my potential tax liability and I've had different opinions from professionals. 

The scenario is that I bought a house for $200k ($150k mortgage). I sold it for $300k. Rather than realizing the $100k gain plus any depreciation recapture, I bought a property for $500k through a 1031 exchange. It was a $350k mortgage and $150k in transferred equity. 

If I sell the house for what I bought it for net of costs, I would think that there would be $100k in gain + recapture. However, I have been told that my cost basis is $200k (ignoring recapture) and the gain would be measured by the selling price $500k. However, that increased selling price is essentially due to taking on an extra $200k in mortgage.  I have been told that's just the way it is, despite seeming unfair on its face considering the increase is due to increased debt.  Is this correct? Any insight is appreciated. 

I've had a Safeco umbrella policy that covers my primary and 11 rentals for quite some time. I recently moved to a new state and was told that it needs to be rewritten in the new state (TX). Safeco then said they are not writing any new business in my area and declined the umbrella, auto, and primary. 

I'm struggling to find a new umbrella that will cover a primary and 11 rentals. I'm finding that companies have limits on the number of rentals, such as 4 or 10. Does anyone have any recommendations?

Thanks!