HELP With 1031 Exchange.......???
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Hi , I bought an empty lot in Signal Hill Ca for 180k, I had to pull out 60k from my current house to make the down.
I am a Contractor and was going to build the properties but my business is waaay too busy at this time to build so I put the property up for sale for 280k
and I am currently in escrow. I am looking for an easy way to get the most $$ back from the transaction and still pay my 2nd back on my house.
My realtor has told me that I cannot use the $$ to pay my second back or I will have to pay capitol gains on it.
Is there another way around this so that I can pay the second back then put the 100k into something else?
Thanks soo much for your help
Hello,
I may have an answer.
When you sell this property, you'll need to buy another of "like value." You then refi that second property to get your money out.
Thanks,
OnTheWater
Suggest you get tax advice from a tax man, not your Realtor. Capital gains tax is only 15% anyway.
How long did you own the property and do you do this normally in your business ( buy and sell Lots) These factors may effect your tax position.
Did you by the lot in your name or your company?
_________________
Gregg Fous
Investor/Developer
"If you wait for all your ducks to get lined up, you will never get into the water"
[ Edited by GFous on Date 11/10/2003 ][ Edited by GFous on Date 11/10/2003 ]