Hi all! Say I have a property that I am looking to sell outright, and don’t want to do a 1031 exchange. Is it legal or acceptable to do a cash out refi for as much as the bank will give me before selling, therefore reducing the capital gains when I sell? Or are the closing costs usually more than the taxes, so it doesn’t make sense anyway? Thanks!
Sorry, capital gains has nothing whatsoever to do with what you owe on the property.
You can do a 1031 exchange into a TIC investment. You’ll get income without the hassles of rental ownership and your heirs get a stepped up basis at your death.
Like tatertot says, debt has nothing to do with capital gains.