1031 Exchange mortgage boot capitol gains tax hit calculation
Hello guys,
Just wondering if anyone can help me out here. Just about to close on a property soon and was wondering what my tax hit will be under these circumstances on a sales of a Los Angeles multi family property.
Original Purchase price: 575k
Sales Price: 1,330,000
Settlement cash: 940k
Depreciation: 85k
If I did a 1031 exchange and used only 940k how much taxes will I owe the IRS? If I am not mistaken is it 1,330,000 minus 940k = 390k?
Capitol gains tax on 390K?
What if I got a loan for 250K and total reinvestment value was 1,190,000. Leaving a mortgage boot in the amount of 140k. Is the capitol gains taxed on simply that amount? 140K?