Tyler? Yep. Looks like you made $1 million of capital gains from your investment properties.
So you owe us.
Nothing!
But you just sold that property.
Yep, and I'm reinvesting that money into a new investment property with better cash flow. It's taking advantage of Section 1031.
Well, we'll take our taxes when you sell and don't reinvest.
Oh, no you won't. See, I'm building a family empire and have those properties in a trust.
When I die, the capital gains on all of those properties magically disappear.
Yeah, we should probably revise that part of the tax code.
Agreed. But until you do, you get nothing.