1031 exchange new property value

[Ana Vhan]

Based on what I read, I believe that if I am selling an investment property for $1M, I need to by another investment property(1 or more ) totaling value $1M. 

Talking to a CPA, she says that you only need to buy next property worth your profits from the sale(say for ex. $400K). Is this true? 

I would like above to be true since I don’t have more cash to buy another property worth $1M. Or are there other alternatives where I can still defer or save on taxes. 

Appreciate your responses as always. 

Thanks,

Ana 

[Nathan Gesner]

Quote from @Ana Vhan:

Based on what I read, I believe that if I am selling an investment property for $1M, I need to by another investment property(1 or more ) totaling value $1M. 

Talking to a CPA, she says that you only need to buy next property worth your profits from the sale(say for ex. $400K). Is this true? 

I would like above to be true since I don’t have more cash to buy another property worth $1M. Or are there other alternatives where I can still defer or save on taxes. 

Appreciate your responses as always. 

Thanks,

Ana 

 The new property must be equal or greater value than the funds you are exchanging. If you sell Property A and have $400,000 to invest, then the new property must be purchased for $400,000 or more.