In 2017, I bought a plot of land for $60,000. In 2025, if I sell it for eg $360,000. This implies a capital gain of $300,000??? I am thinking of using 1031 exchange. Can I keep this initial capital of $60,000 and not be part of the 1031 exchange to get another property ? Will this $60,000 be taxable?
To fully defer the gain you must reinvest all of the sales proceeds. 1031 Exchange: How it Works - TurboTax Tax Tips & Videos
You cannot designate specific dollars out of the sales proceeds as being your basis. If you take out $60,000 from the sales proceeds, this will be treated as not deferring $60,000 of gain and will be taxable.
To fully defer the gain you must reinvest all of the sales proceeds. 1031 Exchange: How it Works - TurboTax Tax Tips & Videos
You cannot designate specific dollars out of the sales proceeds as being your basis. If you take out $60,000 from the sales proceeds, this will be treated as not deferring $60,000 of gain and will be taxable.
This is such a miserable process...I decided to make a youtube video after spending ~3 hours with two separate turbotax experts on the phone.