How to sell your investment real estate without paying taxes?
If you’ve ever been a stock investor, you know what a conundrum it is if you’ve made money, but want to move into a different stock.
Let’s say you absolutely crushed and have a $100k profit in your Apple stock, but you think it’s gonna slow down because, siri, and you want to move it to AMD stock because, AI. You can definitely do that, but the crappy part is you now owe 15-20% of those profits as capital gains tax. It may not sound like a lot in percentages, but that’s $15-20k you just added to your tax bill. Yuck.
But with real estate, we get amazing tax benefits. We can sell a home, make a $100k profit, buy more real estate, and NOT pay taxes on the profits.
It’s called a 1031 exchange, but the name itself is not important. Just the concept. That we can buy sell buy sell and not pay taxes every step of the way. That’s a huge benefit of investing in real estate.