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PDtax
PDtax, CPA firm owner
Category: Capital Gains and Losses
Satisfied Customers: 4444
Experience:  Tax professional and business consultant for 34 years
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I have a muli plex apartment building that I am thinking of

Customer Question

I have a muli plex apartment building that I am thinking of selling and carrying the mortgage my self, but I would pay off the current loan that I have using the down payment from the buyer, can I put the down payment from the buyer in an escrow account and then pay off the existing mortgage with the money that is in the escrow account, would I have to pay capital gains on the debt relief of the current mortgage even if I do not touch the money, I purchased this property using a 1031 exchange and would not have to pay capital gains tax until I take the money.
Submitted: 1 year ago.
Category: Capital Gains and Losses
Customer: replied 1 year ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  PDtax replied 1 year ago.
Hi from just answer. I'mCustomer I'll assist.I'll post an offer for the phone call as well.
Expert:  PDtax replied 1 year ago.
What you have in mind won't work. The problem is the transaction requires a closing, and a change of title. That triggers the taxable component.
Expert:  PDtax replied 1 year ago.
You have 1031 experience, so that could be a deferral option, but what you have in mind won't fly.Thanks for asking at just answer. Positive feedback is appreciated. I'mCustomer
Expert:  PDtax replied 1 year ago.
Hi again.Customeragain.If my response addressed your questions, please rate my assistance to close out your request. I'mCustomer

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