How can I sell a rental property without paying capital gains taxes?
A 1031 Tax-Deferred Exchange allows an owner of a rental to sell and reinvest the proceeds in another investment property without triggering a taxable event. This allows you to get rid of a property which you have already depreciated and move into another property without paying capital gains at the time of sale. Please note, the operative words are “tax-deferred”. If you eventually liquidate your investment property holdings, taxes may be due at that time. Refer to your tax professional for additional advice. The key to a successful 1031 exchange is choosing the right escrow company or accommodator. I have experience in this area so, if you are considering a tax-deferred exchange, call me toll-free at (877) 877-SOLD! By the way, the tax rate for capital gains is currently 15%. The United States Congress has discussed the possibility of raising the capital gains rate. So many investment property owners are choosing to sell and pay the taxes due now rather than exchanging for another in
Related Questions
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- Can I sell an investment property without paying tax on the capital gains? What is a tax-deferred exchange?
- How can I sell a rental property without paying capital gains taxes?
