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"Oh, and they pay taxes on the profits." do they? or do they just keep doing 1031 exchanges, and doing cash-out refinances now and then to use the money?
by mgkimsal 5y ago
"Oh, and they pay taxes on the profits."
do they? or do they just keep doing 1031 exchanges, and doing cash-out refinances now and then to use the money?
- sakopov 5y agoAccording to IRS 1031(a)(1) a property that isn't held for investment does not qualify for 1031 exchange. A pure flip on real estate is held for sale and therefore does not qualify for 1031 exchange.
- diveanon 5y agoI personally know someone who did this up to a $30m home in ft. Lauderdale that they cashed out recently and paid effectively no taxes on. The system is completely broken.