If I buy down, how much is taxable? Or does that screw up my exchange?

In order to not pay any tax, you must buy equal or up. If you buy down, the amount of the buy down is taxable. For example, if you sell your Old Property for $100,000 and you buy the New Property for $90,000, you will pay tax on the $10,000 buy down and the whole $10,000 will be taxable.

--The Experts

	I really appreciate Tee-Shots! The short, succinct tips are timely and I can pass them on to my clients as a professional courtesy. If I need more info for myself or my client, the links give us MORE! Thanks!
	Mike Moloney, President Commercial Real Estate Institute, Inc. Phoenix, Arizona

TEE-Shots are Tips from the Exchange Experts that are designed to make you think about, and ask questions about, the 1031 exchange process.