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Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2421
Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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I want to consider doing a 1031 exchange, a rental property

Customer Question

I want to consider doing a 1031 exchange, a rental property with another rental property.
If I spend less than what goes into the escrow from the sale of the old to buy the new rental what would be my tax consequence?
How would I best estimate how much income tax I have to pay on the difference I keep, which I plan on using to upgrade my primary home. So if I have to pay tax on the difference I want to make to I set aside enough to pay the taxes before I spend on improving my primary home.
Submitted: 1 year ago.
Category: Tax
Expert:  Anne replied 1 year ago.


I'm Anne. I've been preparing taxes for 28 years and I'll be happy to help you

Capital Gains are capped at 20 % for 2016, although you may qualify to pay less, depending on the kind and $ amount of your other income.

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