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Capital gains tax on investment property

Bpracing1127

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Can someone educate me on this. We have a rental property we are looking to sell and buy a new primary residence with. Do I have to pay CGT or can it be waived?
 

COCA COLA COWBOY

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I take it you haven't lived in it 2 of the last 5 years? You would want to do a 1031 exchange and rent the new residence out for a couple years, then move into it to avoid gains.
 

530RL

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If you want to use the gain on the investment property for a new primary residence, you will have capital gains as well as recapture at ordinary rates of some depreciation if you took advantage of that.

Seek accounting advice to determine your net gain.
 

HNL2LHC

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I take it you haven't lived in it 2 of the last 5 years? You would want to do a 1031 exchange and rent the new residence out for a couple years, then move into it to avoid gains.


This!!!! If you have not lived in the residence for two out of the last 5 years you will have to pay CGT. OR you can 1031 exchange it for the house that you want to live in. BUT you will have to rent it for 2 years to not have the CGT applicable. Talk to your realtor and find an exchange expert. We are going through the same issues with our rentals.
 

DLC

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Did you do any improvements to it!?

flooring
appliances
paint
countertops
shiters /toilets
kitchen sink / faucets etc

these are all direct right offs prior to capital gain
 
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