Thank you for responding - my first time to really reach out...
My situation more clearly:
I sold a (passive) rental property held in my solely owned LLC reported on my personal 1040 Schedule E. The initial plan was to open a 1031 exchange escrow with an identified property. The property has a significant capital gain basis and little to no expense - just yearly income.
However, I have another rental property in the same LLC reported on my schedule E where I am the full time manager etc... participating full time owner. The second property has had significant loss due to operational expenses, CoVid shut downs (2020) and building improvements carried forward over the last three years. My income is increasing each year and will slowly decrease the operational loss.
I would like to consider the sale without the encumbrance of the 1031exchange if it would benefit me by reducing the tax liability of the capital gain with offsetting the income losses reported on Sch E.
Make sense? Possible?
