The IRS allows property owners to defer capital gains liability if they buy another rental property and meet the requirements for a so-called 1031 exchange. The IRS does not allow property owners to defer their capital gains tax from the sale of a rental property if they use the proceeds to buy a personal residence. The proceeds must go into another rental property.

***

Send a Letter to the Editor for publication.
Send a comment or news tip to our newsroom.
Please include the headline of the story.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top