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Aren't you exempted from capital gains tax if you reinvest the money within a year or whatever?
by floren 3y ago
Aren't you exempted from capital gains tax if you reinvest the money within a year or whatever?
- jedberg 3y agoOnly the first $250k (or $500k if you're married). And you use it to buy another primary residence.
- lotsofpulp 3y agoI think they are referring to a 1031 exchange. https://www.investopedia.com/financial-edge/0110/10-things-to-know-about-1031-exchanges.aspx https://www.investopedia.com/financial-edge/0110/10-things-t...
- jedberg 3y agoNo, they were referring to the capital gains exemption, which is only allowed every two years. Actually, you pay full cap gains on a 1031 exchange because it can't be your primary residence. You pay gains on the difference in value during the exchange, and if you sell it down the line you pay gains on the full difference (minus your improvements).