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Sell one rental unit? Can I put the profit into 2 other rental units I own and defer capital gains?

Last post 01-04-2008 3:12 PM by Bill Exeter. 1 replies.
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  • 01-02-2008 2:17 PM

    Sell one rental unit? Can I put the profit into 2 other rental units I own and defer capital gains?

    I want to sell 1 of 3 condos I own. The first is paid off. The 2nd and 3rd condo units have mortgages. Each condo has a different property address. Could I take the cash from the sale and start to pay off the 2nd and 3rd condo mortgages? Would this defer the capital gains tax until I sold the 2nd and 3rd unit?

    • Post Points: 5
  • 01-04-2008 3:12 PM In reply to

    Re: Sell one rental unit? Can I put the profit into 2 other rental units I own and defer capital gains?

    This will not qualify for 1031 exchange treatment.  You are selling real estate and paying off a mortgage, which is not an acquisition/purchase of a real estate interest.  You would have to acquire other like-kind replacement property. 

    William L. Exeter
    President and Chief Executive Officer

    EXETER 1031 Exchange Services, LLC
    A Qualified Intermediary (Accommodator) for 1031 Exchanges

    EXETER Fiduciary Services, LLC
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    • Post Points: 1
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