USA Tax liability on 1031 Exchange with "Boot"

Joined
Sep 18, 2021
Messages
1
Reaction score
0
Country
United States
I sold a rental house in Colorado for $397,000 and purchased (thru 1031) a rental house in North Carolina for $286,000. That worked smoothly, however, after expenses I ended up with $89,000 in cash (the "boot") The original price for the CO rental was $95,000 and I took $30,000 in depreciation on it. This all took place thru a two person Llc partnership so that, basically, all these figures would be divided in half. I and my partner each earn $14,000 per year in regular income.

Questions are:

1- Will there be any Federal Tax due for each partner?
-How is it calculated?
2- What will the Colorado Tax be?
 
Last edited:

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Members online

No members online now.

Forum statistics

Threads
11,666
Messages
27,639
Members
21,470
Latest member
Batty

Latest Threads

Top