As a general rule, the IRS may view a cash out refinance completed right before or right after the completion of a 1031 Exchange as an attempt to take equity out of the exchanged property. Investors should wait at least 6-12 months between the exchange and the refinance to minimize the chance of additional IRS scrutiny. https://fnrpusa.com/blog/1031-exchange-cash-out-refinance/
You will pay capigal gain tax if you received 1031 "boot":
(1) Cash boot: cash leftover after sales of relinquished property and purchase of replacement properties.
(2) Mortgage boot: reduction of debt after 1031 exchange.
Example:
Let's say you have a relinquished property of 1 mil price and 500K loan. You get 500K cash after sale.
(1) You exchange to a exchange property of 800K with 500K loan, You pay 300K, you will have cash boot of 200K. This is subject to capital gain tax.
(2) If you exchange to a property with 800K and 300K loan, you pay 500K at closing, you have no cash boot, but 200K of mortgage boot. This is also subject to capital gain tax. Because you merely shifted the cash boot of 200K in (1) into the mortgage boot.
from the same fcuking article I provided earlier. As a general rule, the IRS may view a cash out refinance completed right before or right after the completion of a 1031 Exchange as an attempt to take equity out of the exchanged property. Investors should wait at least 6-12 months between the exchange and the refinance to minimize the chance of additional IRS scrutiny. https://fnrpusa.com/blog/1031-exchange-cash-out-refinance/
有意向1换两。 是一下就换两呢，还是先买一个，过段时间再refinance 拿出钱来再买一个？ 一下就换两呢有些忙，再说现在市场上投资房抢得利害。
现在有点思路不清，
， 请教一下利弊？
自己google “cash out refinance 1031 replacement property"，最好等一年左右。最好不要在一个报税年度里。
需要考虑的因素是：（1）各地市场涨价还是降价可能性不一样，(2) 利率走向也不清楚。不过在我看来，这种事最好一起做，你越拖最后纠结和花费更大。
我建议你在屋里挂一个你崇拜的投资偶像的照片，比如川普或者巴菲特，每当犹豫的时候，就看着他们的照片问：”what would you do?"
答案往往是你“应该”做的。
google 了一下， 还真看不出1031 exchange and cash out refinance 咋逃税法？ 反而更糊涂了一些： 假如50万的卖价，有40万equity, 我必须要换50的房还是40万的就行了？
挂川普或者巴菲特的画，还不如找这里的大佬像 柠檬椰子汁 你
As a general rule, the IRS may view a cash out refinance completed right before or right after the completion of a 1031 Exchange as an attempt to take equity out of the exchanged property. Investors should wait at least 6-12 months between the exchange and the refinance to minimize the chance of additional IRS scrutiny. https://fnrpusa.com/blog/1031-exchange-cash-out-refinance/
那1031 exchange replacement property price 必须是在relinquished property 的sale price 以上呢还equity 以上？
You will pay capigal gain tax if you received 1031 "boot":
(1) Cash boot: cash leftover after sales of relinquished property and purchase of replacement properties.
(2) Mortgage boot: reduction of debt after 1031 exchange.
Example:
Let's say you have a relinquished property of 1 mil price and 500K loan. You get 500K cash after sale.
(1) You exchange to a exchange property of 800K with 500K loan, You pay 300K, you will have cash boot of 200K. This is subject to capital gain tax.
(2) If you exchange to a property with 800K and 300K loan, you pay 500K at closing, you have no cash boot, but 200K of mortgage boot. This is also subject to capital gain tax. Because you merely shifted the cash boot of 200K in (1) into the mortgage boot.
from the same fcuking article I provided earlier. As a general rule, the IRS may view a cash out refinance completed right before or right after the completion of a 1031 Exchange as an attempt to take equity out of the exchanged property. Investors should wait at least 6-12 months between the exchange and the refinance to minimize the chance of additional IRS scrutiny. https://fnrpusa.com/blog/1031-exchange-cash-out-refinance/
cash out refinance 太近了，IRS 认为你逃税（拿笔钱出来化）。 如果拿钱来投资的话问题不大。
逃税就是逃税，哪里有看你逃税以后是去投资还是花销？