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A
amyonghwee
October 30, 2024
Solved

real estate capital gains and 1031 exchange

  • October 30, 2024
  • 3 replies
  • 0 views

In 2017, I bought a plot of land for $60,000. In 2025, if I sell it for eg $360,000. This implies a capital gain of $300,000??? I am thinking of using 1031 exchange. Can I keep this initial capital of $60,000 and not be part of the 1031 exchange to get another property ? Will this $60,000 be taxable?

    Best answer by Anonymous_
    No text available

    3 replies

    A
    Anonymous_Answer
    Employee
    October 30, 2024
    No text available
    N
    NateTheGrEAt
    Employee
    October 30, 2024

    To fully defer the gain you must reinvest all of the sales proceeds. 1031 Exchange: How it Works - TurboTax Tax Tips & Videos

     

    You cannot designate specific dollars out of the sales proceeds as being your basis. If you take out $60,000 from the sales proceeds, this will be treated as not deferring $60,000 of gain and will be taxable. 

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      A
      amyonghweeAuthor
      October 30, 2024

      @NateTheGrEAt 

       

      Thanks for the reply and article!

       

      N
      nick616
      February 6, 2025

      This is such a miserable process...I decided to make a youtube video after spending ~3 hours with two separate turbotax experts on the phone.

      https://youtu.be/8c1TJpmParg

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