<h1>Tax Benefits of Reinvesting in Real Estate: A Family Conversation</h1>
Hey Dad, did you just sell our investment property and make $200,000 in gains?
Yup, sure did.
Did I hear someone has some taxes to pay on that income?
Nope. Because I'll be reinvesting that money into a nicer property in a fancier neighborhood.
I don’t owe you a dime.

Hmm? Five years later...
Hey Dad, did you sell the new property and make $400,000 in gains?
Yes, I did.
Okay, now I'll take my taxes on even more of your income.
Not so fast. I'm just putting it back into another property in the wealthiest neighborhood I know.
Okay, but this time you better let us know when you stop reinvesting. We'll be waiting.
We'll be waiting a long time. I'm not selling this property. I'm leaving it to my son, and all of the capital gains will reset and disappear. No taxes for you.
Aww. Didn't you write the tax code?
Oh, I just started yesterday. Great benefits.