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1031 Exchanges

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Ali Hashemi
  • Investor
  • Southern Indiana, IN
95
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178
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1031 Exchange Question

Ali Hashemi
  • Investor
  • Southern Indiana, IN
Posted Feb 28 2018, 18:42

Hi,

I'm closing on a portfolio of 4 duplexes. All four duplexes are under one LLC and a single commercial loan is servicing the portfolio. I'm considering rehabbing and selling one of the duplexes. My question is this:

If I sell 1 of the 4 duplexes can I 1031 exchange the $ from the sale back into the existing commercial loan? Or do I have to pay taxes on the sale of the duplex? My lender is ok with me splitting up the portfolio like this - so that's not an issue. My knowledge of 1031 exchanges is very limited.

Thank you

ALI

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