All Forum Posts by: David Bittorf

I’ve noticed some places near me selling at top dollar just to be put back on the market two weeks later for a couple thousand more. For example: a property normally selling around $630,000 sold for $651,000. Then put on the market 2 weeks later for $653,000. I’m thinking this is a 1031 deal where someone bought something they didn’t really want but felt pressured to buy to avoid taxes. Then, hoping to sell it to buy them more time to do another 1031. Even if they lose money, which seems like they will after closing costs, they don’t really care since they would have lost more to taxes on that money. But now, if it sells, they have another 60 days to identify another property. Is this correct?

@Dmitriy Fomichenko thank you for the quick reply and clarification.

My father-in-law, who is in his mid 70s was wondering if it's possible to use funds from his 401k for a down payment without getting hit hard on the taxes.  In other words can the 401k essentially be transferred to real estate.  Not sure if it matters but he is currently in North Carolina looking to buy in California.  

@Dave Foster thank you for the info Dave!!!

@Dave Foster thank you! That helps to clarify things for me.

Hmm interesting!! I was not aware of the DST. Thank you!

Can a 1031 exchange be invested into a less expensive property? ...or do you always have to buy bigger and better to make that work?

@Ashish Acharya

This a a bizarre case. The FBI called her this last week because it sounds like it may have been sold illegally to the current buyers. Long story short, there are unpaid taxes on the property and the title is still under the name of her great uncle (who passed away 9 years ago). Her great aunt passed away 3 years ago. Both had no children. My wife and the 3 others are the closest relatives. The property is paid off and may be worth between 400 to 600k. I’m just starting to look into the details.

@Ashish Acharya

Thank you for the reply. Would it be possible to do a 1031 exchange on our portion? If we did this, we should not have to pay taxes on the gains (as long as its reinvested into another property). Let’s assume the other three parties involved do not do a 1031 exchange.

My wife just found out that she may be the heir to a property of a relative that died serval years ago. She, and 3 other family members may split the ownership of the property. My question is - if the property was sold - how would that money be taxed?  Not sure if it makes a difference but the property is in Washington DC and we live in California.