All Forum Posts by: Christine Krizenesky

@Alex Olson

The confusing part is why would we be taxed on the proceeds that would just go back to the personal HELOC from the flip because that's where the money originally came from. I understand being taxed on the gain itself but not the money that I used to rehab it in the beginning. But again is this muddy because the flip is in an LLC and the funding was from a personal home HELOC?

@Mack Benson

Thank you for your reply.

Are you saying you can only 1031 on a buy and hold, and for what amount of time would you have to hang on to a property to be able to use a 1031?

@Christine Krizenesky

Note to the question above - (the Flip is in an LLC )

I recently used a personal HELOC to purchase a flip house then rehabbed and sold the house. I decided to use a 1031 exchange for the tax advantages and our accountant told us we can't use any of the proceeds to pay back our personal HELOC. Have any of you ever used the proceeds to pay back your personal HELOC and how did you do it?

@Brian Pulaski

Thank you, will do

@Jason D.

I think so too,

I think this ultimately will be a combination of the above. Appreciate the help!

@Brian Tome

Makes a lot of sense, we’ve been told to hold at least 10% until job is totally completed to satisfication. Then pay promptly. Thank you !

@Matthew Paul

Thank you,

It looks like I’ll have him itemize everything so I know the cost of materials.

@Parker Eberhard

Thank you, it seems to be the theme but within reason.

Thanks so much!

@Will Barnard

Awesome ! I didn’t see this reply before I responded to the previous comment which all of these have been extremely helpful (esp. since it’s my first flip)

Thank you