re: 1031 Exchange Rules are terrible

quote:

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If the description in OP is accurate, then it is a messed up law. If I have 500k sitting in a savings account, mine free and clear, and I buy a property with it, then sell the property for 600k, why is the 500k suddenly subject to taxation? It’s my money.

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That's not the rule, you're slightly misunderstanding. You only pay taxes on the capital gains but to avoid paying taxes on the capital gains you have to reinvest the original 500K plus the 100K gains. If you want to put your 500K back into savings after the sale then you have to pay taxes on the 100K. I think you should only be required to reinvest the gains not to pay taxes on the gains. but instead you must keep your original capital tied up in property.