Had to pick between a 1031 exchange or cashing out on a small retail strip

We sold a property in Boise and had 45 days to decide. Went with the exchange into a newer industrial building, but the identification rules were way stricter than I realized. Anyone else get tripped up by the three-property rule?

2 comments

2 Comments

smith.anna18d ago

Ever think cashing out was the smarter move? The exchange locks you into another property with all its own problems and costs. You had the money in hand, free and clear, to invest anywhere or just take a win.

emma34918d ago

Wait, you actually think cashing out and paying the capital gains tax was the smarter move? I've done two 1031 exchanges and both times the tax savings alone paid for major renovations on the new property. Your mileage may vary, but that kind of immediate tax hit would have set me back years on my investment timeline.