Can you skip the capital gains tax when you buy a property investment?
Ryan Haley, broker and owner of Atlantic Shores Sotheby’s International Realty, has a great tip that you can use.
There are a lot of sellers who are interested in taking advantage of the real estate market right now that prices are up. But these same sellers are also not happy that they have to pay the capital gains tax.
If you are in this situation, one thing that you can do is a 1031 tax deferred exchange. According to the IRS tax code, a 1031 exchange will allow you to sell one investment property, take those proceeds to buy another investment property and not pay any capital gains tax.
However, there are certain timelines and restrictions related to a 1031 tax deferred exchange that a real estate buyer must know first. If you want to know more, we’ll be happy to walk you through every step of the way.