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Unconstitutional Patriot
Join Date: Apr 2000
Location: volunteer state
Posts: 5,620
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If you sell the commerical property for say $600k and buy a replacement property for $300k, you are on the hook for $300k, even if it is mortgage debt.
boot is any money received from the transaction or debt that is eliminated, but the above looks a bit nicer.
The ideal 1031 exchange is when you exchange UP. If you have a $600 property, you trade UP to a $800k property, for example.
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