Should I sell the property under 1031 or not?
Okay I have a little over 200k in equity on my first rental house. I plan to use the equity to jump into a larger complex. I have looked up and studied 1031 exchanges for a while now knowing I’ll be selling when the current tenant lease is up in October.
My business partner said he spoke to a tax professional and I have confirmed since I recently lived in the property 3/5 years there won’t be any capital gains.
My question is, is it worth it to do the trade up on a 1031 or just sell the property and leave it open for new properties. I have not done a 1031 but I know I would use a 1031 professional. However 1031 has its limits.
What other taxes would I pay selling the house? Income tax?