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1031 into an existing property?
Newbie Starting out here:
Our plan is to buy investment property/ rental, then the next property (5-8 months) would be a flip. How is the flip profit taxed? I thought a 1031 is needed and then if possible to but that profit back into the first rental just to pay down the mortgage.
How does this work?
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- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
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Sometimes it's a lack of cash and the need to keep the pipes primed more quickly but no cash to do so.
Sometimes it's because it is a job for them. and they need the liquidity to live on as well.
Sometimes it's just because we've also got a little adrenaline freak flag that needs to fly and be satisfied once in a while with a good feeling fix and flip!
And sometimes it's just because nobody explained to them what the difference could be delaying and taking advantage of 1031 exchanges..
- Dave Foster
