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1031
Posted on 4/19/19 at 7:13 pm
Posted on 4/19/19 at 7:13 pm
So kind of new to this topic since most of my real estate transactions have just been done through cash. Anyway, a great investment opportunity came up and my only way to get the down payment is to liquidate my personal stock investments (not retirement accounts). The plan is to sell down all of my stocks to convert to cash and use those funds for the down payment. My question becomes, should I prepare for a capital gains hit? Or can I claim this as a 1031 exchange? Or is really there a better process for this?
4
Posted on 4/19/19 at 7:59 pm to EngineerOnDemand
1031 Exchanges are only for investment in real property into like kind real property.
You can't exchange out of stocks.
You can't exchange out of stocks.
This post was edited on 4/19/19 at 8:00 pm
Posted on 4/19/19 at 8:28 pm to EngineerOnDemand
If you bank with like Merrill Lynch or another large bank and have a sizable stock account (over $250k non-retirement last time I was pitched on the idea). You should be able to get a loan and use your stocks as cross-collateral and not have to sell.
The programs set up for individuals nearing retirement that might want a beach house or house for kids at college.
Ensure you read all about it and it may not be a great idea to tie it all together.
The programs set up for individuals nearing retirement that might want a beach house or house for kids at college.
Ensure you read all about it and it may not be a great idea to tie it all together.
Posted on 4/19/19 at 8:43 pm to EngineerOnDemand
If you are worried about capital gains go get a line of credit secured against your stock holdings. That is, if you have time to do that. Any local bank should give you the loc
Posted on 4/19/19 at 8:58 pm to eng08
I may have to investigate this idea. I have a sizable amount in retirement with Morgan Stanley. Thanks.
This post was edited on 4/19/19 at 8:59 pm
Posted on 4/19/19 at 9:00 pm to thatguy777
My personal accounts aren’t nearly as valuable as my retirement. If I can borrow against the retirement without much interest, that would be huge for me.
Posted on 4/19/19 at 9:32 pm to EngineerOnDemand
Yeah, they may only value it at 50% due to stocks and then there are stipulations like if it drops a certain % you may be forced to sell.
Posted on 4/19/19 at 10:15 pm to EngineerOnDemand
quote:
Anyway, a great investment opportunity came up and my only way to get the down payment is to liquidate my personal stock investments (not retirement accounts).
Thought you said sell stocks in a personal account. If it’s that great of an investment you shouldn’t have to worry. Loc may be 5-6% if you are financially sound
This post was edited on 4/19/19 at 10:17 pm
Posted on 4/20/19 at 10:37 am to EngineerOnDemand
You have current real estate investments? Is the proposed deal good enough to sell one or more current properties and then use THAT for a 1031 exchange?
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