Do I have to pay taxes on capital gains on an investment if.
Hi guys, new here, can't wait to start reading through everything.
Question: I'm currently an investor on a 17 unit condo development in Glendale California. I'm a silent parter and have 400k in the project and am expecting about a 200% return. My plan is to take my initial investment of 400k and pay off my loan. If I were to rollover 600k into a 1031 exchange (to build mor condos), and take 200k out and use it as a downpayment on a small apartment complex, would iI have to pay capital gains on the 200k since its not a 1031 exchange (not simalar investment)?
Many thanks,
Mike.