Ep. #97 1031 Exchanges: How to Defer Capital Gains Tax on Properties?

Abstract

What if you didn't have to pay capital gains taxes when you sell an investment property? Deni and Brian break down 1031 exchanges, and what you need to know about using them to defer paying capital gains taxes on real estate when you sell a property. You sell an investment property, and you take your profits from that property, and you reinvest them into a new investment property. Now, you will still need to pay capital gains when you go to sell the new property that you buy unless you 1031 exchange that property so you can keep kicking the ball down the road. Oh so. You know, on that topic of kicking the can down the road and continuing to 1031 exchange your profits from one property into a bigger property, into a bigger property, if you die without ever having sold one of these properties and not 1031 exchanging it, know, if you keep that final property in the chain until you die, then you don't pay any capital gains taxes on any of them ever. Now, again, you will owe it when you sell the new property unless you roll that new property into another new property when you saw that one. Within 45 days of selling your old property, you have to declare up to three different options for new properties that you're planning on buying to replace the old one. Then you need to settle on one of those three new properties within 180 days of selling your old property.