1031 and Equity Line Payoff
Hi, I own a rental property...single family residence. I have owned since 2003. I understand when I use an exchange company to facilitate sale/exchange, when property is sold the first mortgage is paid. I have an equity line on the property I attained to make repairs/upgrades to enhance the sale proceeds. Can the exchange facilitator also pay off the equity line on sale? So the net proceeds, to apply toward new exchanged property loan, will be the result of paying off first and equity line..and still be fully considered a 1031 exchange with no tax consequence from paying off both loans? All cash from equity line was used in the rental. Thanks for answering. I appreciate the time. dan