1031 exchange (NC Sale to FL Investment)

[Angelica Rivera]

Hi BB Blog!

I have a single family 2bd/1ba home (built 1940) that's been eating more money than it can make. I've put it on the market for 65K and was advised to do a 1031 exchange. I want to use this money to invest in a Merchant Cash Advancement that has a solid return on investment. Can I do a 1031 exchange from property sale to invest in a company? I've been looking online for info but haven't found info on this. All I keep seeing is a property to property 1031 exchange. 

[Dave Foster]

@Angelica Rivera, that's not a heap of tax.  But with the 1031 exchange itself cost you on average $850 that looks to me like a possible net savings of around 3300 - 3500.  If you're just going into real estate and feel confident you can find a good replacement that would be enough savings to motivate me.

But if you're wanting to go into an investment that is non-1031 compliant then that is the cost you have to factor to determine if that investment is $3500 better than what you can find in real estate.