What happens when I sell?

You did a cost seg. Now you want to sell. What are your options? Say a couple buys a $1 million beach rental. They run a cost seg, and deduct about $250K.

Three years later, they want snow, and a more active life. They want to ski. A 1031 exchange lets them trade the beach for the mountains.

The beach house sells for $1.2 million. A qualified intermediary holds the cash. They have 45 days to name the new home, and 180 to close.

About $450K of gain is deferred. They buy a $1.5 million ski house. Their basis comes with them. And the $300K they add is new basis, ready for a new study.

Some furniture and appliances can be taxed at sale, so talk to your CPA first. The tax waits. Your basis comes with you. Visit unlevered.io. Cost seg, made simple. Illustrative: IRC §1031; Treas. Reg. §1.168(i)-6 and §1.168(k)-2(g)(5)(iii). Not tax advice.