Capital Gains Tax in PA

[Michelle Romano]

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[Dave Foster]

@Michelle Romano, Doing a 1031 exchange (selling your current property and following a prescribed process to buy another investment property) will certainly defer all federal tax and depreciation recapture.  PA is a different animal and there are very limited circumstances where you may avoid the PA tax.  A 1031 isn't very expensive But deferring the fed portion could  be a good thing.  

1031s are not difficult but there are specific rules and timelines.