Thinking of selling your non-primary residence or vacation home? You are most likely going to pay capital gains tax unless you do the following.
One way to avoid capital gains tax on a vacation or investment property is a 1031 exchange. This involves using the profits of the sale to purchase another investment property, thus putting the proceeds back into real estate instead of your bank account. New Construction may be a good way to go but you must meet the 1031 timelines and guidelines.
You must follow strict identification and timeline rules for a 1031 exchange to the letter:
- You must identify the exchange properties in writing within 45 calendar days of the closure for the relinquished property in accordance with one of the…
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