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1031 exchange questions

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deeze6

Guest
What is the name of your state? NJ

Hello All,

I have a few questions regarding 1031 exchanges.

If I buy an investment property how long do I have to hold it before I can sell it in a 1031 exchange?

What exactly do they mean by tax deferred? Lets say I sell House A for $100,000 profit but defer capital gains taxes by exchanging it for House B. I then sell House B for no profit and buy no more houses after that. Do I then have to pay for the deferred taxes on House A?

House A House B
Bought 200,000 Bought 300,000
Sold 300,000 Sold 300,000

Thanks,
Deeze6
 


abezon

Senior Member
There's no minimum time you have to hold the property but you do have to meet all requirements for a 1031 exchange. When you sell the second house, you pay taxes on the deferred gain as if you'd sold the original property.
 

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