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Updated about 3 years ago on . Most recent reply presented by

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Jas Sarn
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6
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Partial 1031 Exchange

Jas Sarn
Posted

I am looking for a 1031 exchange to sell one property in California / SF Bay Area to multiple properties in other states.

I bought the home for $200K. It is worth now $600K. I plan to invest the $400K of gains in potentially 2 homes in other states and generate more rent and also diversify out of CA (as my primary residence is also in CA)

Will my original $200K investment on the home that I am selling  (I plan to cash this for different uses) considered a Boot ? If yes, Why should it be ?

I am not making any capital gains from this transaction as I am investing ALL of the $400K in capital gains back in real estate through 1031

Thanks

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User Stats

6
Posts
2
Votes
Jas Sarn
2
Votes |
6
Posts
Jas Sarn
Replied

Thank you. The house is paid off and I do not have any mortgage.

It is just unfair to treat the original investment ($200K) for which taxes were paid when it was earned earlier and tax it again :(

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