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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 17080
Experience:  10 years experience
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i sold a second home and made a profit but i re invested to

Customer Question

i sold a second home and made a profit but i re invested to buy another property do i have to pay capital gains
Submitted: 5 years ago.
Category: Tax
Expert:  Wallstreet Esq. replied 5 years ago.

Wallstreet Esq. :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification.

Wallstreet Esq. :

Under IRS regulations "if you exchange business or investment property solely for business or investment property of a like-kind, no gain or loss is recognized under Internal Revenue Code Section 1031. If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the extent of the other property and money received, but a loss is not recognized."

Wallstreet Esq. :

If you took the profits and purchased another property with it, you would not have to pay capitol gains tax.

Wallstreet Esq. :

You would have to complete form

Wallstreet Esq. :

http://www.irs.gov/pub/irs-pdf/f8824.pdf

Wallstreet Esq. :

IRS FORM 8824

Customer:

thanks

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