1031 Exchange Question

Posted by Tim Williams on June 20, 2002 at 21:37:34:

Please advise:I purchased property "A" 5 years ago for $75,000I now have an offer of $140k on the table.

I will profit approx. $65k from the sale.

I wish to buy property B, which is a $100k home inneed of repairs. I can get it for $75k.

Since my actual profit on property A is only $65k,will property B quality as a 1031 Exchange since I am investing my entire profits from property A?

Or, am I required to purchase property at the fullsales price (or higher) of property A to qualify for1031?

I can be reached at timw@erols.com, or post here.Thanks!!!

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