Capital Gain Tax Deferral
The next stage in my real estate income is being geared towards new construction. I am predicting more money in selling newly built homes compared to buying, rehabbing, and flipping.
We are allowed to run 1031 exchanges to defer the tax when selling a lower priced home to purchase a higher price investment.
Is there a way to do the same when selling a home and using the funds to build a new home?
I will need to sell 2 homes to have enough cash to build the house that will also be intended for sale after built.
I plan on using all the funds from that sale to build 2 more houses. From there I wall start dipping into the profits. It be nice If I can defer the taxes once again after I sell the new built home to build the other 2 homes.
Any ideas or thoughts?