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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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Am making a decision to sell a rental property, what are my

Resolved Question:

Am making a decision to sell a rental property, what are my options for the capital gains on the sale? Can I roll the money into my current home?
Submitted: 7 years ago.
Category: Tax
Expert:  Merlo replied 7 years ago.
Hello noah,

When you sell investment property, your only option is to pay capital gains tax on any gain you had from the sale, or to reinvest the money in to another like-kind investment property. The sale proceeds cannot simply be rolled in to your current personal home or used for anything other than another investment property.

If you want to purchase another investment property, this is called a 1031 Exchange and must be handled through a qualified intermediary. The new property you purchase must be identified within 45 days of the first sale and the purchase must be completed within 180 days.

Other than participating in a 1031 Exchange which would allow you to defer the capital gains, there are no other options for not paying the capital gains tax on the sale.

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Thank you noah.

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