1031 Property Exchange I own a Condominium in California which was acquired…

1031 Property Exchange
I own a Condominium in California which was acquired through a 1031 property exchange. My question is as follows: Can I use a 1031 exchange on this property to acquire a manufactured home or mobile home for equal or greater value of my exisitng condominium? Can the amount of the new purchse be lower than the sales price of my existing condominium? I would appreciate your assistance in this matter.

2 thoughts on “1031 Property Exchange I own a Condominium in California which was acquired…

  1. Re: 1031 Property Exchange
    A 1031 exchange is an exchange of one investment property for another, therefore, I am assuming that the condominium is being rented out, and you plan to do the same for the manufactured home.

    You must remember that a 1031 exchange does not eliminate your capital gain tax, but merely defers it to a later date. If you purchase a property for less, you will have partial exposure to capital gains taxes.

    In order to give better advice, an attorney or other tax advisor would need to obtain additional information. There are times when it could be advantageous to report the capital gain, such as when you have other capital losses that could cancel the gain.

    Ken Koenen
    Koenen & Tokunaga, P.C.
    5776 Stoneridge Mall Rd., Suite 350
    Pleasanton, CA 94588

  2. Re: 1031 Property Exchange
    First of all the basis of the test is ” the same or similar “. In this case it is a residence and I assumed that it is being rented at this point to the you’re acquiring income. The 1031 exchanges not good for primary residence property. I would consider both to be within the definition of the 1031 statute. When you start talking about the value of the property being less than the value of the property being transferred out you may have a problem. The 1031 exchanges not excuse or waived taxes but just the first them to someday in the future. Therefore, in this case given the fax being minimum, if you are trading down there may be a capital gain that you will now have to recognize where you would not otherwise have to recognize that if you are trading upward. There may be deductions available what you have not set forth in your fax which would allow a reduction or elimination of capital gain this time. It is all based upon crunching the numbers. The best advice I can give you as seeking the aid of the council of does a substantial amount of 1031 exchanges. There are either company’s or individual attorneys who do this. You can get their names from your local Bar Association or local real estate association. Not her all the same and I would interview a few before hiring anyone.

    Michael Olden
    Law Offices of Michael A. Olden
    1035 Alta Mesa Drive
    Moraga, CA 94556

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