Mon Apr 22 2024, by Tyler Gardner
Understanding Legal Tax Strategies for Investment Properties
Could you tell me something that seems illegal but isn't? Absolutely!
Ten years ago, I bought an investment property in Nebraska. Then I upgraded to a property in Vermont. Then to a property in Pebble Beach, California. Finally, to our new property in Aspen. All without paying one dime in capital gains taxes to the IRS.
Is this just some tax loophole that you only know about because you're rich? Nope! Anyone can take advantage of Section 1031. Just have to identify a new investment property within 45 days of selling the old one, and close on that property within 180 days.
If somebody else holds the proceeds from the sale, the IRS knows that they're going towards the new property.
Where did you learn about this? I just follow Social Cap. They make complex finance seem easy.
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