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

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Rainmaker
787,011
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
562,132
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
3,481,916
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

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

Sep 16, 2017 07:34 AM
Rainmaker
2,856,708
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

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
4,547,620
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
1,250,529
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
3,600,485
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

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
415,979
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
1,578,243
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

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

Sep 16, 2017 01:27 PM
Rainmaker
760,647
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
526,014
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
1,588,940
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

Not qualifed to answer.

Sep 16, 2017 09:42 AM
Rainmaker
2,531,516
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
1,523,755
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
5,672,204
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

You should get this adivice from your CPA.

Sep 16, 2017 08:37 AM
Rainmaker
3,546,215
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 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
5,263,762
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

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
Rainer
4,362
Stephanie Holmes
Homes Cute - Bellview, TX
My focus is to provide helpful tips on real estate

 Some people think that if you sell a house, you must buy a similar house to do a 1031 exchange. This is a myth. In fact, the rules around what is “like kind” are pretty loose. You can sell a house and buy a gas station, apartment complex, or even a piece of land. What you can’t do is sell a house and buy stock, bonds, a piece of art, or collectible figurines.

Nov 28, 2018 08:10 AM
Rainmaker
3,062,378
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Candice A. Donofrio nailed this one!

Sep 17, 2017 06:05 AM
Rainmaker
3,895,462
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - 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
1,701,955
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
969,379
Thomas J. Nelson, Realtor e-Pro, CRS, RCS-D, Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

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

Sep 16, 2017 11:31 AM
Rainmaker
1,395,277
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
1,062,942
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
3,365,037
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill 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
4,262,352
Joan Cox
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
4,304,722
Praful Thakkar
LAER Realty Partners - 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
2,928,461
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
3,343,440
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
1,034,323
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
4,798,170
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
4,432,589
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
1,873,206
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
3,984,686
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
515,411
Abby Stiller
REMAX Realty Group - Cape Coral, FL
Professional Bilingual Realtor (239) 284-8637

Talk to a 1031 company or your CPA

Sep 16, 2017 08:40 PM
Rainmaker
3,985,224
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

No

Sep 16, 2017 08:21 PM
Ambassador
2,411,458
Fred Griffin Tallahassee Real Estate
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
4,153,196
Jeff Dowler, CRS
eXp Realty of California - Carlsbad, CA
The Southern California Relocation Dude

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

Sep 16, 2017 05:58 PM