How to avoid paying real estate capital gains tax?

Question

Dave Foster · Answer

@Walter Correia, yes a 1031 exchange will allow you to defer capital gains indefinitely. However you must have a qualified intermediary in place prior to the closing of your sale. I'll reach out with a pm to give you a white paper on the process.

Steve K. · Answer

@Walter Correia

Yes, read up on 1031 exchange rules. I believe you have to identify the substitute property within 45 days, then close on it within 180 days....otherwise you are taxable upon the sale of your property(ies).

Matt K. · Answer

1031 forever

Zach Smith · Answer

Depending on your employment status, marital status, etc you may be able to allow any long term capital gains to not be taxable. Some have the ability to lower their "w-2 wages" in a given year to the point that long term capital gains are taxed at 0%. For 2017 if you can push your earned income below about $76k for a married couple you will be at that 0% rate.

Bill Exeter · Answer

Hi @Walter Correia,

You have exactly 45 calendar days after the close on the sale of your relinquished property to identify potential replacement properties as part of your 1031 Exchange transaction. You have an additional 135 calendar days after your 45 calendar day identification. To actually complete and close on the purchases of your replacement properties. This gives you a total of 180 calendar days in order to complete your entire 1031 Exchange transaction.

The 1031 Exchange allows you to continually defer your taxable gains for ever as long as you keep 1031 exchanging throughout your lifetime. You will never incur the taxes as long as you keep exchanging, and whoever inherit your property will receive a step up cost basis upon your death and pay no taxes either.

How to avoid paying real estate capital gains tax?

How to avoid paying real estate capital gains tax?

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