1031 To Pay Off A Note?
I will be gaining proceeds from a pre-sale condo deal that I will be selling in March. Does anyone know if I can 1031 a portion of those proceeds to pay off $36,000 Note that I owe on one of my other properties?
thanks
[ Edited by viterix on Date 03/31/2006 ]
Yes, we know.
No, you cannot.
No, the sale of a real estate interest (if this is a sale of a real estate interest) will not qualify for 1031 exchange treatment by paying down debt. The pay down of the debt is not an acquisition of a real estate interest.
I suspect the proceeds are the result of a sale of the contact to acquire the condo and not the sale of the actual real property interest, in which cash the sale would not qualify for 1031 exchange treatment any way.
[addsig]