1031 Partial Payment
Hi all:
I am a newbie and had a question on partial payment of sale proceeds and the tax implication:
I understand that I can have a partial 1031 exchange where I can withdraw some cash. I am told that I have to pay capital gains tax on the amount. But if the amount I am withdrawing is the down payment I made for the relinquished property, should I still be taxed on that amount? In a normal sale transaction, that would not be part of my cost basis (and thus not taxable).
THanks in advance
i am doing the same and have added all cost as part of the exchange
[addsig]