For what its worth...
In my case, I sold a property and the proceeds were held by
an "exchange" company until the new property(ies) were
identified and the proceeds were then used to exchange for
the new property(ies).

So, I think that you'd have to ID new properties AFTER the
first property is sold in the 1031 exchange using the gross
sales prices.

Denise

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In any case, unless this were an income producing investment
property, it is not eligible for exchange.

If it were an investment property, used in a like-kind
exchange, the purchase price of the new property would have
to exceed the basis of your old property in order to be able
to defer any gain. If, indeed, it were a rental property,
depreciation would also have to be factored into the mix.

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"GRider22" <GRider22[at]hotmail.com> wrote:

- quote -

To be completely tax free, the new place has to be of the
same or higher value than value (sale price) of the old
place.

If the new place is of lower value, it can still qualify for
1031 treatment. But to the extent the value of the new
place is lower, you will have taxable income on the
difference.

- quote -

The $200,000 will be taxable income unless you find other
property to spend the money on as a part of the exchange.

On the other hand, if you live in it for two years the
$250,000 can all come out as tax free so you don't have to
worry about any of that.

Stu

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"GRider22" <GRider22[at]hotmail.com> wrote:

- quote -

In the example you outline you'd have $195,000 of taxable
profit. In a 1031 any boot received (ie cash) is taxable.
Thus $550,000 sale price less the $355,000 yield your
taxable boot. Invest the total proceeds.

--
Regards,

Mark Rigotti

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I've been reading about 1031 Exchanges and I have a question
about an aspect of the exchange, namely:

"you have 45 days to identify a replacement property of
equal or greater value."

Does this mean of greater or equal value of the entire sale
of the property or just the taxable profit of the property?

My personal example is:

300,000 - bought beach condo
550,000 - future sale beach condo
-------
250,000 - profit

355,000 - future buy city condo

Will a 1031 work in this case or do I have to go find
200,000 more in property to buy for the 1031 to work?

Thanks in advance for any advice.

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