1031 Exchange Question · 🏠 Lower Taxes w/ Ryan

1031 Exchange Question

We purchased a property for 386K and sold it for 540K. No major CapEx. We owned it for about 5 years so we have ~25K in depreciation recapture. We're looking at condos around the 400K-500K range (that we'll fix up to force appreciation). I spoke with our QI and they told me about construction or improvement 1031's. They charge an extra 5K more than a regular 1031 for this. I think the tax benefit is worth the additional fee but not completely sure.

Trying to understand if this makes sense or if there's anything we should be aware of.

Also, another idea is to purchase the property for 540K, and ask for a seller credit (to be paid outside of closing) to handle repairs. Is this kosher?

Basically, we're trying to do a "full" 1031 but we don't want to over-leverage right now.

Any thoughts/ideas are GREATLY appreciated. Thanks!!

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