rbynaker
Level 13
02-28-2023
05:50 PM
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Not something I see very often but to me the first step is in getting a transaction that balances. I cringe whenever folks use the terms "sale price" and "purchase price". 1031 is for EXCHANGES. So taxpayer gave up x in exchange for y. That means x = y.
Gave up:
$212,500 value of property
$150,000 down payment
$207,500 note payable
Received:
$357,500 value of property
$ 43,000 mortgage pay-off
$ 15,926 of exchange fee "value"
x != y