Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I am selling my rental condo and I am going to make a fifty thousand dollar profit. My question is, can I take twenty five thousand dollars of the profit to purchase a deeded indoor parking space, and pay taxes on the other twenty five thousand dollars? Could this qualify as a 1031 exchange?

The numbers don't justify a 1031 exchange. In a 1031 you defer immediate capital gains taxes on the positive difference between your calulated profit minus your boot(non-like kind assets received or liabilities trnsfered) and calculated profit. Your boot from the sale consists of your cost basis plus your net profit minus the $25,000 real estate(Parking space) received. This appears to be larger than your calculated profit, so you will be unable to defer any gain on the 1031 exchange.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.