Updated over 4 years ago on . Most recent reply
1031 Exchange Question and Concerns
My husband and I are looking to buy a multifamily unit using the equity from our single family property. The idea is to move into one of the units of the multifamily, rent out our single family property, and eventually sell our single family home in a couple of years.
Our questions is as follows: Once we sell the single family property, are we subject to capital gains tax even if we take the profits and apply it to the multifamily loan to reach 20% down payment? Or would it be better to simply use the 1031 exchange to purchase another like-kind property?