reinvesting capital - Posted by robert decell

Posted by John B. Corey Jr. on July 23, 2005 at 02:55:56:

The 1031 rules are pretty specific.

Any type of RE can be exchanged for another type.

One thing to watch out for is the time limits and the relative values (debt and total value). Best to ask an exchange company.

On a different matter, you might owe a lot in taxes but you may find that now is better the later for declaring the gain. You will have more or less the lowest capital gains tax rate now and the recapture rate (for the depreciation recapture) is not that high. If tax rates go up in the years to come then you will be worse off then. It just depends on what you do with the money (re-invest so it grows more but staying with investment RE) or some other possibilities.

John Corey
Chelsea Private Equity LLC

reinvesting capital - Posted by robert decell

Posted by robert decell on July 22, 2005 at 19:27:33:

I have two duplexes with about $65,000 dollars of equity.
I need to sell these to pay off some bills and reinvest. I am tired of landlording and looking to invest in some type of business. I have owned these since 1987 and have refinanced them twice. If I don’t do a 1031, I will owe a load of taxes. Is it possible to do a 1031 to build houses? One attorney said 1031s can be used to purchase any business, is this possible? I am also looking for advice on what to invest in.

Thanks Robert