1031 exchange means NO CASH TO YOU

It really doesn't matter how much gain/loss you've got out of the sale.  The important thing is that cash proceed from the sale portion of the exchange shall be deposited with an intermediary, and the cash proceed from the sale portion MUST BE paid toward the exchanged property.    Any left over cash that ultimately goes to you is called "boot", and may subject to the capital gain tax.  It doesn't matter the left over cash is from your principle from the sold property or capital gain of the sold property.  If you have boot, the boot is presumed to be capital gain and may subject to CGT.  

 

所有跟帖： 

• 是，但是第二个投资房卖了之后不想再买房，1031不继续，钱就进口袋了 -xebbk- ♀ (0 bytes) () 08/27/2022 postreply 09:08:10

• "如果我第二个投资房亏钱卖了40万"? -柠檬椰子汁- ♂ (1245 bytes) () 08/27/2022 postreply 09:18:12

• +1 一切都是以第一个property为基础的。不管一个房经历过几次1031. -古来万事- ♀ (0 bytes) () 08/27/2022 postreply 09:30:29

• 第二个房子40万卖，亏10万 -xebbk- ♀ (0 bytes) () 08/27/2022 postreply 10:15:05

• Keep track of your basis. -柠檬椰子汁- ♂ (194 bytes) () 08/27/2022 postreply 15:20:46

• 谢谢！回答了我的问题 -xebbk- ♀ (0 bytes) () 08/27/2022 postreply 16:47:29