larger 1031 equation question
selling a property for 2.7M.
book value 750K
cap gains tax rate 21%
owe 1.4M so if I cash out i owe 411,000 taxes.
I have rolled several properties over the years with 1031 but am getting tired of what I'm doing . can you say burnout?
That's the scary part.
So my question is if I buy something for 1.35M or half of the sell value and use all the cash for down payment so I don't take a boot.
What is my taxes then? Now I have no cash to pay them.
Do i deduct the total book value or is half going to each side of the equation?
Hope this makes sense to you .