1031 exchange 80k gain worth the process?

[Matthew Wright]

Is it worth doing a 1031, if youre talking about 80k gain? I have a single family rental property ill be selling. It would be my first 1031. Are the fees and everything worth the tax benefits when talking about this amount of money?

[Linda Weygant]

Originally posted by @Jaysen Medhurst:

@Matthew Wright, this isn't cut and dry. It depends on your situation and what your plans are. 

Do you plan to stay invested in RE? What other capital gains do you have? I believe the first $77k of capital gains is tax free for a couple filing jointly (*not an accountant*). If you'd only have to pay 15% tax on $3k, it probably isn't worth the costs and restrictions of doing a 1031.

 No, not remotely true (and if you've given this advice anywhere else, please go back and correct it).

That $77,000 figure is your TOTAL INCOME.  So if you have total income - W2 plus rental PLUS Capital Gains plus any other taxable income, then your Capital Gain tax bracket is 0% IF it is a long term hold.  Short term is taxed at ordinary income brackets.