Updated over 6 years ago on . Most recent reply
1031 exchange avoid tax on flip profit
i'm selling 3 of my rental properties that i have been holding for 3 years.
my question is , if i'm buying a bigger residential house first, and 4 months later this year, i sold these 3 rental properties, and use the proceeds to pay towards my residential house mortgage, will that avoid any tax?
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Wayne Brooks
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Wayne Brooks#1 Foreclosures Contributor
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No. And, it wouldn’t help if you bought the personal residence after.
A couple of basics on the 1031.....
It can Not be used to buy a primary residence
You must BUY Investment real estate to replace Investment real estate sold.