I have an apartment building that i am condo converting. I am going to do a 10 31 exchange. Can i take out any money at closing to reimburse myself for contracting the project? Some legal people say yes and some say no. Perhaps there is a loophole. Any thoughts?
Wed Feb 22, 2006 9:30 pm
Jaszbo Preferred Member
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If it's been under two years I don't believe so. With a 1031 exchange you have to exchange it for something that has to be equal or more and I'm pretty sure the IRS looks at the equity that's in the new property and closing cost isn't included, since it can depend on your lender and a lot of other factors on how much your closing costs is. I could be wrong about this, so this is my assumption.
Thu Feb 23, 2006 3:12 am
JBendar Senior Member
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Location: Woodbridge, New Jersey
If you look on the bottom of this thread there are some references to 1031 exchange. Check them out. They might be the answer you are looking for.