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in az. i inherited my mothers home in 2005, through a living

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trust, turned it into a...
in az. i inherited my mothers home in 2005, through a living trust, turned it into a rental, home at time was worth about $200,000. selling it for $135,000. if i don't invest or do a 1031 tax exchange, will there be tax on it? if so should i do a 1031 tax exchange?
Submitted: 4 years ago.Category: Tax
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Answered in 8 hours by:
6/4/2013
Tax Professional: Robin D., Senior Tax Advisor 4 replied 4 years ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15,868
Experience: 15years with H & R Block. Divisional leader, Instructor
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Robin D :

Hello and thank you for using Just Answer,
The tax in a 1031 exchange is deferred until the replacement property is sold. If you sell at a loss you would not have tax to pay. The amount of recapture on the depreciation would not be a factor if you sale the property at a loss, so applying the 1031 exchange rules in that situation would not benefit.

Robin D :

In short, if you were selling and you were going to have again then a 1031 exchange is a beneficial option to defer the tax that would ordinarily be applied.

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Customer reply replied 4 years ago


i would never use your service again. the answer was nothing, so nebuous, and noncommital. i have used 1031 tax exchange for years that is not what i asked about.

Tax Professional: Robin D., Senior Tax Advisor 4 replied 4 years ago
Did you want to ask something in addition to the original post? I do not understand what portion of your question I did not address.
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Robin D.
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