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I own a residence and a rental property. Could I sell the…

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I own a residence...

I own a residence and a rental property. Could I sell the rental, and use the proceeds to pay down my primary mortgage as a 1031 exchange?

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Primary mortgage balance is $350k. Rental property would probably produce around $140k net. I'm asking how to avoid as much long-term gains tax as possible.

Submitted: 4 months ago.Category: Tax
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Answered in 2 minutes by:
12/14/2017
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 4 months ago
Chad EA, CFP ®
Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional
Category: Tax
Satisfied Customers: 2,163
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA
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Welcome to JustAnswer!

My name is***** will be able to assist you today.

A 1031 exchange applies to property that is "like-Kind." For example, a rental property exchanged for a rental property. Unfortunately, a primary residence is not eligible for a 1031 exchange.

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Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 4 months ago

In order to defer capital gains you would have to exchange property A for a "like-Kind," property.

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Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 4 months ago

If you would like for me to expand on my answer above or have additional questions please let me know!

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