CA Real Estate
California Real Estate Law Questions? Get Answers Online Now.
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Unfortunately, you will owe capital gains taxes on the profit you make from this income property UNLESS you do a 1031 exchange....which is where you use the profit from this sale to purchase a similar investment property. If you don't do that, you'll have to pay taxes on your profit. However, you can reduce your profit by deducting your expenses from that amount....this can be anything from repairs made, taxes paid, etc. An accountant can advise you regarding ways to reduce the actual gain after all available expenses are deducted.