Real Estate Taxes

[psebastian]

Is there a way to avoid taxes on selling a property?

I have sold 2 properties this year. The one was a flip. We bought it this past november and close the end of this month. - So it is a short term capital gain.
The other is our 1st home. We bought over 3 years ago and are closing on it in October.
We are currenlty building a home and it will be done by the end of the year. Do it matter when we close on the new house? Will we avoid capitol gains if we close on it beofre the end of the year? We will be rolling the gains for the other properties into this new home.

Thank you

[Jim Erickson]

According to the IRS rules, you will not pay capital gains on a home sale that was your primary residence 2 of the past 5 years. There are other considerations, like "hardship" and would recommend a visit to the IRS website.

[Mike Colpitts]

Take a good look at the IRS rules and regulations on this stuff and talk with an accountant for advice on how to handle your finances. Many people really mess up when it comes to real estate and taxes and end up paying dearly for it later on. Like Jim mentioned above there's a ton of info on the web.

Good luck with the new house!

[jasoncrouch]

Call a CPA and discuss capital gains (Jim is correct about the 2 out of 5 years). With the other property, you could consider a 1031 exchange by rolling the profits into another investment property.

[findcre007]

Tenants-in-common program is to defer taxes on the property after the sale. § 1031 and the Internal Revenue Code, a person is obliged to invest the proceeds after selling real estate can defer taxation. They are usually required to pay taxes was a long-term capital gain amount