1031 Exchange into Different States
Hi all,
I purchased a 2bd/1.5br townhome in Summerville, SC nearly two years ago and am thinking about selling it and using the capital gains to invest in Seattle, WA, where I'm living. The townhome is currently estimated at over double my purchase price, so there will likely be substantial capital gain once it sells. I would ideally like to defer paying taxes on the gain and roll it into an MF property in Seattle so I can stop paying rent and house hack. All that said, I have a few questions about the process below:
1. Can I use money in a 1031 account for a down payment on an FHA loan? If not, can I use it for a 10% DP, or does it have to be a conventional 20% DP?
2. Will there be an additional taxes incurred from bringing the capital from SC to WA?
3. I haven't listed my townhome yet nor have I found a property in WA. Should I do a Delayed 1031 exchange?
4. What's my window of opportunity? 45 days from my sale to go into escrow with another property?