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In order to do a 1031 exchange, there has to be a simultaneous swap for one property for another
If the property has already been sold, then you can't do a 1031 exchange.
Have you actually sold the property in Hawaii?
I am asking for a friend but yes he closed on Monday and wants to write an Offer on a property in Marina Del Rey. He is concerned that he has to keep Marina Del Rey as a rental property instead of Owner Occupied or pay capital gains tax. He wants to do a 1041 Exchange because he is divorced. So you are saying he cannot roll the gains into the purchase of another property and not pay capital gains tax because his property already sold?
He cannot do a 1031 exchange
The 1031 exchange is structured, and it would have to be a simultaneous swap of property, or near simultaneous
and would have to go through a qualified intermediary
So, unless he lived in the Hawaii property 2 out of 5 years he will owe capital gains tax on this transaction
There is no provision that allows for reinvestment of gains.
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