Used 1031 for purchase, Can you still Refi-Cashout tax free ?
The point of a 1031 exchange is to defer tax payment on a property until future sale. That being said, what does this mean for refinancing-cash out in the future? Can you still do this?
In other words, if you refinance and take cash out of a property that was purchased with 1031 funds, are you then taxed on that portion of the 1031 money? Is there anyone with personal or profession experience who could answer this ?
Thanks in advance.
Dave