All Forum Posts by: Dustin Keiswetter

A big thanks to everyone for the great advice. I am learning a lot as I go. Also I have gone ahead and cancelled the 1031.

I am close to closing on my first flip. I have paid mostly cash along the way (year and a half) So I am needing to keep some cash out of the 1031 exchange. My question is if I bought the house for 10k and put 30k into it and sold it for 80k after closing costs, that leaves 40k im responsible for in capital gains, is that correct? So if I put 40k into the 1031 and keep 40k in boot money, when I get the tax form next year for the 40k boot can I then deduct my 40k expenses and improvement to zero out my tax bill?

Thanks for any advice!