1031 exchange cans and cant's

[Jorge Martinez]

Hello Everyone,

I was wondering when it comes to a 1031 exchange, can I take the money from the 1031 and use it to pay off my mortgage on my primary residence and then take the rest and buy another property?

Someone mentioned of a Reverse 1031 exchange, but I am not sure if this would fall under it.

[Winston Covington]

Hi Jorge. An important team member for every Investor is a good CPA. A CPA or an Enrolled Agent are the best sources for reliable 1031 exchange info. With that said, I can tell you that funds taken from a 1031 and not used to purchase real estate is called “ Boot “. Boot would be taxable and something to avoid. Contact your tax professional for advice before considering a 1031.