|
Welcome back! What did you think of our Property Management Software?
Are you subscribed to our feed and receiving email updates? |
Avoid Capital Gains
A real estate investor or landlord can avoid capital gains tax through an exchange of investment property of a like-kind, and then no capital gain or capital loss is recognized under Internal Revenue Code Section 1031. If, as part of the exchange, a real estate investor or landlord also receives other (not like-kind) property or money, a capital gain is recognized to the extent of the other property and money received, but a capital loss is not recognized.
Section 1031 applies to like-kind property and avoid capital gains tax.
Avoid Capital Gains tax through exchange of Like-Kind Property
Real estate rental properties are of like-kind, if they are of the same nature or character, even if they differ in grade or quality. Real estate rental properties generally are of like-kind, regardless of whether the properties are improved or unimproved. However, real estate rental property in the United States and real property outside the United States are not like-kind properties.
Real estate investors or landlords can avoid capital gains tax through a 1031 tax exchange. For more tips on minimizing capital gains tax or avoiding capital gains tax check the tips at rental property tax deductions.
This is a blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies. Avoid Capital Gains Tax is brought to you by SimplifyEm Pay Rent Online and Property Management SoftwareYou might also want to read:
- 1031 Exchange Tax Deferred | Avoid Capital Gains Taxes Forever You can potentially avoid paying taxes forever by continuing to exchange your properties. When you get down to your final property, just don’t sell it, and it won’t get taxed.......
- Capital Gains Tax Planning | Principle Residence 1031 Exchange If you sell a multiple-unit property which includes your primary residence, the sale may qualify for a 1031 exchange, and you may be entitled to the $250,000 exclusion on capital......
- Capital Gains Tax Deferred | 1031 Exchange Tax Planning When you sell rental property you will probably owe a 15% tax on the capital gain and a 25% tax on the depreciation recapture. You can defer the tax payments......
