All Forum Posts by: Vickie Lukacs

So Noah, my understanding is that if I do the reno and do not 1031 the property but just sell it and pay capital gains - I can reduce the tax burden by the Capex amount (my major improvements over the years, my reno - plus adding back the depreciation that I have taken advantage of during my ownership). If I 1031 the property, then I would plan to spend all of my proceeds on new properties to defer the tax burden. Hopefully I am understanding this correctly. I do have a call with my accountant later today. Thank you!

I have a rental (that's been vacant for the last year - family member - health issue). Now I would like to do a bit of rehab on it to maximize profit (est. 30k) and sell it 1031 for a property closer to my location. Is the rehab in any way deductible from the amount needed to roll into the new property or must I come out of pocket for the rehab and roll the entire sales price into the new property to avoid Long Term capital gains at this time?