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1031 Exchanges

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Craig Lessler
Pro Member
  • Investor
  • Scottsdale, AZ
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80
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Using Capital Losses to offset Depreciation Recapture & 1031

Craig Lessler
Pro Member
  • Investor
  • Scottsdale, AZ
Posted Mar 16 2017, 14:00

Regarding a future 1031 tax deferred exchange, I estimate $800K will need to be invested into replacement properties to continue to defer tax liability of all depreciation recapture and capital gain from the sale of a property.  If the depreciation recapture is $200K and there is an additional long term capital gain of $300K, could $150K of carry forward capital loss be used to offset depreciation recapture and a partial 1031 exchange be made into a new property purchased for $650K without incurring a tax liability?

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