real estate investing

Monday, August 01, 2005

Never Pay Capital Gains Taxes On Your Real Estate Investments Again! 1031 Exchange Basics

If you use the U.S. tax code in your favor, you will never have to pay capital gains on your real estate.
What I suggest is a 1031 Like Kind Exchange. This says that you can sell a property at a profit and pay no capital gains as long as you buy an equal or greater property that is the same type within 180 days of your sale. (There are other restrictions so ask your title company before you do it.)
Let's say you bought a home for $75,000, 10 years ago and sold it today for $125,000. You paid off the mortgage during that 10 years with the rents that you received. You probably depreciated it during the time that you owned it, but I won't get into that now.
So, let's say that your "tax base" (the amount ... more...
Originally Posted on 8/1/2005 9:54:09 PMContent source:


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