The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/another-1031-exchange-question-22761355.aspx

Subject:  Another 1031 exchange question Date:  7/17/2005  8:37 PM
Author:  ChrisLarsen Number:  80065 of 121061

I will be closing on a new construction condo (to be used as a rental) sometime early next summer (2006). My plan is to sell a current rental property and roll the gain into this new property using a 1031 exchange. My questions are:

1. Can I do this since I already put a contract on the new condo?
2. If I can, can I pull out my original down payment from the original rental property and just roll the gain into the new condo?
3. Would I be able to receive my deposit back from the new condo and simply use the proceeds from my rental property sale as the down payment?

The goal is to get the original deposit & down payment back to purchase another property, while maximizing my tax benefits.

Thank you in advance for your help!

- Chris
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us