topic section 1031 exchange in Investors & landlords

section 1031 exchange

rohnnk — Wed, 08 Jan 2025 19:57:15 GMT

I will have approx 9200 in fix up expenses on house I am selling in an exchange, carpet, appliance repair, building inspection, roof repairs, misc stuff, where do I report them?

Re: section 1031 exchange

RobertB4444 — Tue, 14 Jan 2025 16:58:23 GMT

They will be reported as part of the "cost of sale" in the exchange. Because you are doing a 1031 exchange all elements of cost of sale simply add to your basis in the exchange and are not deductible at the current time.

@rohnnk

Re: section 1031 exchange

rohnnk — Tue, 14 Jan 2025 17:12:45 GMT

"they will be added to the basis..."? how bout the re commission and other selling expenses?? by adding to the basis they become deductible by being subtracted from the gross sales price.

my main concern is that these items have been paid with a credit card that cant be paid with exchange proceeds at closing, surely there must be a way

Re: section 1031 exchange

RobertB4444 — Fri, 17 Jan 2025 16:28:16 GMT

No. Unless the property that you are exchanging is commercial or a rental property then expenses associated with the sale become part of the basis in the sale and are not deductible at the current time.

@rohnnk