Selling a 1031 Property - When is the tax paid?

[Gustave Stroes]

Hello,

When you sell a house that was purchased as part of a 1031 exchange you are obliged to pay the capital gains tax.

Is this taken out through escrow or is it paid as part of your taxes the following April?

Thank you,

Gustave

[Natalie Kolodij]

If you're now selling a house that was bought via a 1031

When you file your taxes for that year you are paying the tax owed related to the gains of that house PLUS the first house which you sold and deferred the gain via the 1031.