i am taking back a property by way of foreclosure. Can I then do a 1031 exchange

In General Area - Asked by florie m. - May 21, 2015
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Answer(s)

Winnie T.
Broker/Agent
Baldwin Park, CA

I got this people, they specialize in 1031 defer exchanges , give them a call, 310-5301770
good luck

May 28, 2015
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Juve P.
Broker/Agent
Orange, CA

Yes. The basis of the property you are selling, in this case a property you took back by default, is what is going to require tax advise. Not sure if you basis is the assessed value, loan value, or market value. Is the current property listed for sale?

May 28, 2015
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Patrick K.
Broker/Agent
Cypress, TX

If you take back the property where would the cash/proceeds come from? Is there actually a taxable gain?
In order for you to purchase a downleg/1031 property where would those funds come from?

May 29, 2015
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Alan A.
Broker/Agent
Lansdale, PA

complete the foreclosure. get title in your name. talk to your accountant to determine the adjusted basis on your asset. if you then want to sell the property and set the price higher than your basis, you need to hold the property for at least a year before doing an exchange if you go that route, and you would only want to do an exchange if there was a significant capital gain, otherwise there's no need to.

May 31, 2015
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Mark P.
Broker/Agent
Springfield, MO

To the person losing the property, a foreclosure is treated by the IRS as a sale of the property. If the "sale" could be structured according to the RULES of section 1031, the sale could be recognized as a 1031 exchange. But it sounds like a legal nightmare if the property is already in foreclosure. Also you might have a forgiveness of debt problem. You should talk to your CPA & Attorney regarding this before you take any steps.

Jun 3, 2015
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Robert H.
Owner/Investor
Jacksonville, FL

looks like you might have already received all the information you need on this topic but if you need more questions answered, I can help. Just let me know if you have any questions

Nov 29, 2015
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