4 ms·
Theres a common real estate move where you can defer your taxes on a real estate sale if you use the proceeds to buy a similar amount of property (dollar amount
by whb07 9y ago
Theres a common real estate move where you can defer your taxes on a real estate sale if you use the proceeds to buy a similar amount of property (dollar amount) [0].
So as long as the proceeds from the sale go into a similar type of property/business then you can defer taxes for a future date.
[0]:https://www.irs.gov/newsroom/like-kind-exchanges-under-irc-code-section-1031 https://www.irs.gov/newsroom/like-kind-exchanges-under-irc-c...
- matt_wulfeck 9y agoThe problem we’re describing is that their property taxes would increase sinificanty, thousands of dollars a month.
- whb07 9y agoYes temporarily sure? But if you keep deferring can you really tell me what the tax laws will be 50 years from now? I don't think in 2068 if you finally decide to sell and cash out the IRS will come with a list " Well on 2030: taxes were X%, again on 2035: taxes were Y%". They will just give you a bill for the present day tax system
- SeeDave 9y agoFrom my understanding, the issue is with the annual recurring property taxes which have a capped annual increase per Proposition 13. Thus, the "taxable value" of the homes pre-sale is a fraction of what it is post-sale, even after swapping for an identical home. This is not an IRS issue, so much as a county tax assessor issue.
- usaar333 9y agoThis is for investment property, not housing one resides in.