Jerry Caldwell, Currently managing 6 apartment buildings  (Realty Sales Pros)

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Rainmaker
477,943
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

I do not believe that debt relief would qualify as like-kind. Check with your qualified intermediary.

Sep 16, 2017 07:46 AM
Rainmaker
439,776
Mike & Eve Alexander
Buyers Broker of Florida - Orlando, FL
Exclusively Representing ONLY Orlando Home Buyers

Wayne Martin is correct!

Sure you can use the money to pay off your car, credit card, or rental if you like, however you will not get any tax benefit.  Money will be taxed as profit.

Eve

Sep 16, 2017 07:40 AM
Rainmaker
2,263,184
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker

If you want to pay the taxes you are trying to defer!

Sep 16, 2017 07:34 AM
Rainmaker
2,376,768
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale - Probate Broker

Not and still have it qualify as an exchange and tax deferral.  Check with you Accountant or qualified intermediary. 

Sep 16, 2017 07:48 AM
Ambassador
2,969,681
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams fox cities - Stevens Point, WI
Forestland Experts! 715-204-9671

It would be nice if this qualified, I would consult someone who is an expert in these matters before attempting it though.

Sep 16, 2017 05:04 PM
Rainmaker
278,819
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Jerry Caldwell It would be best to consult a local 1031 company to receive the appropriate answer.  Best to you.

Sep 16, 2017 09:13 AM
Ambassador
2,097,743
Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

I would seek advice from a CPA but, of course, you can spend the proceeds any way you want. Just bear in mind that your taxes paid (or not) on the profit, depends upon how you reinvest or redirect it! 

Sep 16, 2017 07:48 AM
Rainmaker
118,812
Susie Kay
Ultima Real Estate - Plano, TX
North Dallas Specialist

I agree with Wayne Martin , paying off your rental will not be considered tax deferred.

Sep 16, 2017 05:49 PM
Rainmaker
1,349,091
Sandy Padula and Norm Padula, JD, GRI NMLS#1483386
Realty One Group - Carlsbad, CA
Presence, Persistence & Perseverance

All great answers and spot on. This was a great question BTW.

Sep 16, 2017 01:27 PM
Rainmaker
607,107
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Money is fungible... so you can use it anyway you please now, as long as you have resources to re-invest in time. I am not a 1031 expert (please consult one!), but my sense is that if you don't find anything suitable in time to re-invest your proceeds, they will be subject to taxation.

Sep 16, 2017 12:54 PM
Rainmaker
414,289
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Contact a member of The Society of Exchange Counselors

 http://www.secounselors.com/

Sep 16, 2017 10:27 AM
Rainmaker
1,266,185
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Area Real Estate

Not qualifed to answer.

Sep 16, 2017 09:42 AM
Rainmaker
2,156,557
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

You  need facts not opinions...

Sep 16, 2017 09:08 AM
Rainmaker
1,359,973
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

That is a question for an attorney or intermediary.

Sep 16, 2017 08:41 AM
Rainmaker
4,119,900
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

You should get this adivice from your CPA.

Sep 16, 2017 08:37 AM
Rainmaker
2,694,356
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

"Can" is an interesting choice of words.  I leave 1031 exchange discussions and questions to a qualified intermediary not only because I "can" but because I believe I "should".   

Sep 16, 2017 08:17 AM
Rainmaker
3,821,532
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

it needs to be a Like-Kind transaction.... but you would be wise to contact an attorney who specializes in real estate.... and/or a CPA.... I'd do both!!

Sep 16, 2017 07:48 AM
Rainmaker
2,470,602
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Candice A. Donofrio nailed this one!

Sep 17, 2017 06:05 AM
Rainmaker
856,872
Corinne Guest, Managing Broker
Barrington Realty Company - Barrington, IL
The Choice of Professionals

Wonderful question, some great answers. We all learn here.

Sep 16, 2017 05:28 PM
Rainmaker
3,098,569
Dorie Dillard
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Check with your intermediary..I don't think that will work..find the time to make it a priority to find a suitable property.

Sep 16, 2017 04:19 PM
Ambassador
1,131,452
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

To my knowledge that is not the definition of an exchange.

Sep 16, 2017 03:11 PM
Rainmaker
663,932
Thomas J. Nelson, Realtor,CRS,e-Pro
Big Block Realty 858.232.8722 - La Jolla, CA
Co-Host of Mail-Right's: Real Estate Agent Podcast

NO, you can only use it to purchase new property and improve that new property.

Sep 16, 2017 11:31 AM
Rainmaker
1,254,917
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Jerry Caldwell If you touch the money you will have to pay the taxes.

Sep 16, 2017 11:04 AM
Rainmaker
752,537
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

It needs to be a like property exchange -real property for real property. You got 1/2 year to make bids until you close a property. 

Sep 16, 2017 08:07 AM
Rainmaker
1,975,217
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

I wouldn't dare opine on that... you need to speak with your accountant or attorney who know the laws in that regard.

Sep 16, 2017 08:06 AM
Rainmaker
3,091,963
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I would check with a qualified 1031 company or title company to be sure you would be in compliance.

Sep 19, 2017 07:05 AM
Ambassador
3,510,368
Praful Thakkar
eXp Realty - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Not an expert at this, Jerry Caldwell - though I do not think so.

Sep 17, 2017 10:57 PM
Ambassador
2,577,415
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

that's a tax attorney or CPA question, not a real estate agent/broker question.

Sep 17, 2017 08:42 PM
Rainmaker
2,261,533
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Good question, will have to see what others have to say.

Sep 17, 2017 06:04 PM
Rainmaker
796,476
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

You can but it defeats the purpose of the 1031 exchange by doing so. I'm not aware of circumstances  where the IRS will let you have your cake and eat it too! 

Sep 17, 2017 10:04 AM
Rainmaker
3,787,272
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Probably, but you'll lose the tax benefits.

Sep 17, 2017 06:02 AM
Rainmaker
3,606,756
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Call an accountant.

Sep 17, 2017 05:23 AM
Rainmaker
1,560,454
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

No you need a replacement property that you acquired with in 6 months 

Sep 17, 2017 05:14 AM
Ambassador
3,220,160
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

If you plan to retain the 1031 tax sheltering advantage then no you cannot as it does not qualify as like kind and fit in the guidelines.

Sep 16, 2017 08:41 PM
Rainmaker
151,564
Abby Stiller
Premier Realty Homes of SWFL - Cape Coral, FL
Real Estate Agent Serving Southwest Florida

Talk to a 1031 company or your CPA

Sep 16, 2017 08:40 PM
Rainmaker
3,223,448
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

No

Sep 16, 2017 08:21 PM
Ambassador
1,782,209
Fred Griffin
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

      If you don't meet the time deadlines, there will be no 1031 like-kind exchange, and the entire capital gain will be taxable.   

     Talk to a qualified intermediary for confirmation.  Many title companies and title attorneys who act as QI's will answer this question for you gratis.

  

Sep 16, 2017 06:45 PM
Ambassador
3,249,669
Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

I think Wayne Martin is right. I'd do some serious research and talk with your CPA

Sep 16, 2017 05:58 PM