Sunday, March 20, 2011

Your questions about 1031 exchange

Paul asks…Capital gains and 1031 exchange?I am currently renovating a home that is NOT my primary residence. I bought the house as an investment. I wanted to fix it up and sell it right away (flip) but taxes will hurt my profit greatly. Im trying to find new and crative ways to avoid taxes.

If I were to sell the house im renovating and use a 1031 exchange to buy another property and make that house I buy my primary residence and live in that house for 2 years and sell that house, will my capital gains be tax free? Or will they look

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