1031 Exchange Hypothetical

[Pete Harper]

I wanted to confirm my understanding on 1031 exchanges.

Sale Price $350,000

Cost basis $150,000

Equity $200,000

Now I only need to reinvest my $200,000 equity. Correct?

Buy $200,0000+ property

Put $50,000 down, finance $150,000

Can I pull out my original $150,000 investment plus the $150,000 financed tax free?

[Natalie Kolodij]

You need to buy a new property that costs more than and more debt than the old one. 

Any money you take out of a 1031 is Boot= Taxable. 

You can not pull out your basis/original investment. 

You can with the new QOZ investments- this is all stuff you should sit down for a consult with your tax pro.