1031 exchange means NO CASH TO YOU

It really doesn't matter how much gain/loss you've got out of the sale.  The important thing is that cash proceed from the sale portion of the exchange shall be deposited with an intermediary, and the cash proceed from the sale portion MUST BE paid toward the exchanged property.    Any left over cash that ultimately goes to you is called "boot", and may subject to the capital gain tax.  It doesn't matter the left over cash is from your principle from the sold property or capital gain of the sold property.  If you have boot, the boot is presumed to be capital gain and may subject to CGT.  

 

所有跟帖： 

• 是，但是第二個投資房賣了之後不想再買房，1031不繼續，錢就進口袋了 -xebbk- ♀ (0 bytes) () 08/27/2022 postreply 09:08:10

• "如果我第二個投資房虧錢賣了40萬"? -檸檬椰子汁- ♂ (1245 bytes) () 08/27/2022 postreply 09:18:12

• +1 一切都是以第一個property為基礎的。不管一個房經曆過幾次1031. -古來萬事- ♀ (0 bytes) () 08/27/2022 postreply 09:30:29

• 第二個房子40萬賣，虧10萬 -xebbk- ♀ (0 bytes) () 08/27/2022 postreply 10:15:05

• Keep track of your basis. -檸檬椰子汁- ♂ (194 bytes) () 08/27/2022 postreply 15:20:46

• 謝謝！回答了我的問題 -xebbk- ♀ (0 bytes) () 08/27/2022 postreply 16:47:29