What is the name of your state? MA
About 10 years ago, my dad inherited his mother's home after she passed away. He has rented it out for the 10 years and at the current moment, it is vacant. He has begun to toy with the idea of selling it but doesn't want to deal with the Capital Gains Tax. So I began to research a legal way of getting by the Capital Gains Tax and came across the 1031 exchhange.
The profit from the sale of the rental property if he sold it would be around $300,000. If he filed a 1031, would ALL of that money be put towards a new house that we have been considering or is there some type of stipulation involved in the 1031 where he has to do work to the house or any other hinderance??
Thanks in advance
About 10 years ago, my dad inherited his mother's home after she passed away. He has rented it out for the 10 years and at the current moment, it is vacant. He has begun to toy with the idea of selling it but doesn't want to deal with the Capital Gains Tax. So I began to research a legal way of getting by the Capital Gains Tax and came across the 1031 exchhange.
The profit from the sale of the rental property if he sold it would be around $300,000. If he filed a 1031, would ALL of that money be put towards a new house that we have been considering or is there some type of stipulation involved in the 1031 where he has to do work to the house or any other hinderance??
Thanks in advance