Comments on: Do I pay captial gains taxes when I sell my investment property if it is the only property I own?

By: Amdrmgirl

Amdrmgirl — Thu, 04 Dec 2008 10:04:28 +0000

You have to have lived in it for at least 2 years out of the last 5 years in order to avoid gains tax. 1031 Exchange defers your gains when you reinvest your money quickly. Ask an accountant though…they are touchy to do.

By: MLaw

MLaw — Mon, 01 Dec 2008 04:26:32 +0000

You will have to pay a capital gains tax on the profit (sale price less purchase price and less cost of capital improvements if any) unless you exchange it for like kind property under IRS SEC1031. Do not even THINK of doing a 1031 exchange without professional advice.

By: Scott R

Scott R — Fri, 28 Nov 2008 18:57:31 +0000

No But,
You can do what is called a 1031 Exchange. Which mean you can sale your current property and the proceeds of the sale can be reinvested in an asset of a similar kind od property (like kind asset), then no capital gain or loss is recognized, this allows the deferment of capital gains taxes that would otherwise have been due on the first sale.

By: regerugged

regerugged — Thu, 27 Nov 2008 19:04:24 +0000

No. You pay capital gains taxes on any capital you own for more than one year. If you own a home that you lived in for more than one year and sell at a profit, you will have to pay capital gains tax.