Selling a house with capital gain tax potential...seeking advice on how to avoid capital gain tax besides a 1031 exchange.
What have some of you successfully done? Please advise
If you do not have long-term stock loss or other property sale loss to offset capital gain, what I did last year were: sold one property with capital gain, then bought another bigger one with cost segregation and bonus depreciation to offset the capital gain, and paid zero tax.
Specialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
5y
Hi @Sakib J.! Have you considered a 721 exchange? It would allow you to still invest in real estate, but as a passive investor and would still allow you to defer the capital gains taxes.