0

I'm looking to execute a 1031 exchange (in USA) but not on the entire amount of the sale.

For example say that I bought a property for $200k with $100k mortgage and I sell it for $300k. Ignoring depreciation, my capital gain is $100k and with no exchange I would be taxed on that amount.

If I made an exchange into a new property for which I paid $300k, taking a $100k mortgage it would not create a taxable event.

What if l bought a property for $250k, taking a $75k mortgage?

Is my capital gain calculated against $50k? Or some other number?

Documentation I've found says that this is permitted but is unclear on the basis for the tax burden.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.