Updated about 8 years ago on . Most recent reply
Tax shelter if selling stock to buy real estate?
Does anyone know if a person qualifies for a certain tax break if they sell corporate stock but immediatly turn around and buy a piece of real estate for investment purposes? Is there a way to do this (legally of course) and not pay the capital gains tax if you're just turning around and investing the money
Most Popular Reply
No. IRS considers sale of stock in a brokerage account as mutually exclusive from real estate purchases. So, there's no mechanism to sell your "Ebay" or "Tesla" stock and roll it into a house.
If the shares were held in a 401K, you could take a loan against that to use as a down payment. Or if in an IRA you can withdraw up to $10,000 to use as a down payment without a penalty for a first time homebuyer. But, if the stocks are held in a regular brokerage account and you sell them you'll have to pay capital gains taxes unless you have enough losses to offset your gains.