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That's a good question. Would you be charged capital gains taxes if you wanted to make a straight-trade of real estate properties, or would there need to be a
by 52-6F-62 9y ago
That's a good question.
Would you be charged capital gains taxes if you wanted to make a straight-trade of real estate properties, or would there need to be a symbolic changing-hands of money on paper, and thus taxed on each side?
I can't claim to be trading real estate properties, or even buying and selling them (long live Toronto real estate market...) so I have no idea. I know it's a weird scenario, but just in an attempt to find an analogue — anybody?
edit: This question was an attempt to create a more relatable analogue scenario for a BTC <> Real Estate transaction. Thanks for the info.
- modeless 9y agoThis is barter. Barter is taxed. You are required to estimate the value in dollars and pay the appropriate tax, whether or not dollars were actually involved in the transaction.
- badloginagain 9y agoI can understand barter being taxed, that's fair, but would capital gains would be triggered if the item being bartered had appreciated in value before being used directly for purchase?
- modeless 9y agoYes
- 52-6F-62 9y agoThat fully answers my question, thanks. I wondered if there was a relevant term in taxation. It's not my strong point, so this is really helpful.
- bradleyjg 9y ago> Would you be charged capital gains taxes if you wanted to make a straight-trade of real estate properties In the United States there's something called a 1031 exchange that allows the deferral of capital gains recognition on a sale of one asset and the purchase of a similar one under some circumstances. But in the case of real estate in can only be used for investment properties not owner occupied residences.