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Irwin Law
Irwin Law, Lawyer
Category: Real Estate Law
Satisfied Customers: 6848
Experience:  Lawyer- Broker 30+years - foreclosure, short sale, liens, title attorney.
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I'm selling a rental investment property and own another. Can

Customer Question

I'm selling a rental investment property and own another. Can I take the money from the sale and pay off the second without taking a hit on taxes?
Submitted: 1 year ago.
Category: Real Estate Law
Customer: replied 1 year ago.
They are in different States
Expert:  Irwin Law replied 1 year ago.
The only way to avoid taxes on the gain from the sale of investment property is by using the provisions of IRC 1031, which permits an exchange for like kind property rather than a sale . Therefore if you apply the proceeds from the sale to pay off another property, you will have to pay the capital gains tax on the property that you sold. I hope that this information is helpful and that you will give it a positive rating.
Customer: replied 1 year ago.
They are both investment properties or does it matter?
Expert:  Irwin Law replied 1 year ago.
It doesn't matter. But if you have operating losses in the remaining property that may serve to reduce the gain. Check this out with your tax preparer.
Expert:  Irwin Law replied 1 year ago.
Hello Again. Do you have any further questions? If not, I hope that you will take the time to enter a positive rating for my Answer so that I will be compensated for assisting you. Thanks again for using JUST ANSWER.

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