Capital gains reinvestment

[John Kerr]

I was wondering if I sell one of my rental units if i can re-invest the capital gains to avoid paying taxes on it. If so how long do I have to re-invest? Any info on this subject would be greatly appreciated. Thank you. John Kerr

[Bill Exeter]

I think the more important issue here is based on the title of your post - Capital Gains Reinvestment. In order to defer all of your taxes, including your capital gain taxes and your depreciation recapture taxes, you must meet the following requirements:

(1) trade equal or up in value by acquiring one or more replacement properties that that have a total purchase price that is equal to or greater than the net sales price of your relinquished property; and,

(2) reinvest 100% of the net cash proceeds received from the sale of your relinquished property.