1031 Questions, with numbers
Hi everyone!
I've been reading through the 1031 exchange forum and I'm still a little confused as to how the actual numbers will work out. I was hoping to give the actual numbers I'm working with to better understand this.
I have a property that I will be selling and just based on estimates I think it would sell for 510k. The current loan is 328k. After all fees etc etc, my agent gave me a sheet which shows me net profit would be 150k.
Is that 510k the most important number in a 1031 exchange? If I found a property, or two, for a total of 500k would I likely be looking at paying taxes on 10k?
If I were trying to avoid financing roughly 25% of this new purchase, how do the numbers work if I bought a 400k property? 300k?
Thank you!