If I sell a residential rental property, will I have to pay 15% federal capital gains tax?

Question

If I do a 1031 exchange and the purchase price of the other property is less then the selling price of my property, can I use the balance to pay down the mortage of another property without being taxed on the balance?

Answer 1

In the 1031 exchange, for a full deferral, you need to buy up or equal on the replacement property side. Anything that you do not use toward the replacement property can be considered taxable boot. For example, you CANNOT use excess 1031 funds to pay off a mortgage for another property and defer the taxes due on those funds. The identification period is 45 days and you have 180 days to close and take title on any or all potential replacement property.

Answer 2

2

Answer 3

This happens to be my specialty. Here are the most common ways to avoid paying capital gains taxes when selling appreciated investment property.

~ 1031 Exchange
~ Installment Sale
~ Charitable Remainder Trust
~ Private Annuity Trust

If you want more info about the Private Annuity Trust, go to: www.myprivateannuity.com

Answer 4

yes you will have to pay capital gains , the only way to avoid paying taxes would be to refinance your home pull out maximum equity this way you will recieve a large check although you have to pay small provider fees wich includes taxes but is a lot lower than capital gains taxes now when you sell your home you will not recieve any profit but since you pulled out all of the equity you made all of your money with avoiding having to pay huge taxes i am a broker feel free to write back [e-mail] or call 813-654-7439 Anthony

Answer 5

IF you sell and reinvest within 9 months,and the new property is same or higher value, no cap gains.

Answer 6

Yes, but I thought it was 45 days to re-invest in Texas anyway...

Answer 7

Rent To Own Home : http://RentToOwnHome.uzaev.com/?ueaq

Answer 8

NO