Keeping some of the proceeds?
Hello everyone!
I’m going to be listing a rental property within the next several days, and I came across a 1031 exchange question I hadn’t considered. There are some up front costs such as inspections and HOA document fees that we are going to have to pay. Once the rental property sells, are we allowed to reimburse ourselves those up front costs from the sale proceeds without it being taxable?
Also, on our taxes last year we had some losses that we couldn’t use that are going to carry over. I was wondering if we could technically take some of the proceeds out to have more reserves on hand and use those future losses as a way to offset the gains from keeping some of the sale proceeds. Hope that makes sense! Look forward to everyone’s insight! Thanks!