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Updated over 4 years ago on . Most recent reply

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Ravi Ramphal
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HELOC used for 1031 exchange.

Ravi Ramphal
Posted

Hi, I currently own a property that I would like to take a HELOC in to purchase investment property. Does this strategy avoid paying capital gains due to 1031 exchange ?

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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
Replied

@Ravi Ramphal Financing has no effect on gain/taxes whatsoever....it is ignored in the profit/gain calculation.  It’s cost basis verses sales price(less closing costs/fees).

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