Posted by Ronald * Starr(in No CA) on September 23, 2003 at 24:18:24:
L. D. Hudson------------------
Any cash received which is not swung over to the purchase of the replacement property is taxable. The remainder, used to purchase the replacement property is tax deferred. Besides buying up in value, it is good to have higher loan amount on the replacement property than you owed on the relinquished property. That prevents further taxation upon sale of the relinquished property.
Also, there is “direct deeding” allowed. You might want to buy John T. Reed’s “Aggressive Tax Avoidance for Real Estate Investors” and his smaller book on 1031 exchanges, available at www.johntreed.com website.
Good InvestingRon Starr*