I did 1031 exchange in 2018. Now, I am refinancing same 1031 exchanged investment property. I was under the impression that one should not cash out. I want to double check.
Below are my questions.
- Can I take cash out when refinancing without any tax implications impacting the 1031 exchange.
- Can I include closing cost as part of loan, and thereby increase loan amount. Does that jeopardies 1031 exchange / tax wise. Or just my cost basis will go up.
