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Avoid Paying Capital Gains Tax Selling Real Estate

How Do I Avoid Paying Capital Gains Tax When Selling Real Estate 

If you are selling real estate like a rental property, commercial building, apartment building, or land and want to avoid paying capital gains tax when selling the real estate, you have some options! There are a few options you have to Avoid Paying Capital Gains Tax Selling Real Estate and we will go over these options for you. If you have any questions at all on this subject of - Avoid Paying Capital Gains Tax Selling Real Estate - you can call us directly at 805-583-2720 or filling out the form below. 

Avoid Paying Capital Gains Tax Selling Real Estate With DST

The first option you have if you are looking to avoid or defer capital gains tax on the real estate you selling, is to do a 1031 exchange DST. A 1031 exchange DST is a very useful tool that allows you to Avoid Paying Capital Gains Tax On Real Estate by reinvesting the proceeds into a portfolio of properties in the Delaware Statutory Trust. The DST acts as your rental property on you receive monthly distributions from your investment. You are allowed to Avoid Paying Capital Gains Tax Selling Real Estate because the DST is setup in accordance with the IRS rules which allow you to defer your capital gains tax on your rental property, commercial building, or apartment building. You can Avoid Paying Capital Gains Tax Selling Real Estate with the 1031 exchange DST quick and easily with the sponsors that we work with. There are some procedures like having a qualified intermediary setup before escrow on your rental property, commercial building, or apartment building closes. By rule of the IRS code section 1031, you cannot take constructive receipt of the funds when selling your rental property, commercial building, or apartment building. Once you take constructive receipt of the proceeds, you are subject to the capital gains tax. The 1031 exchange DST, will allow you to Avoid Paying Capital Gains Tax Selling Real Estate buildings. There are many steps, and rules that must be met in order to comply with the IRS when Avoid Paying Capital Gains Tax Selling Real Estate , and we can help you! Simply give us a call at 805-583-2720 or fill out the form below and we will help you through the entire process for you to Avoid Paying Capital Gains Tax Selling Real Estate!

Traditional 1031 Exchange To Not Pay Capital Gains Tax When Selling Real Estate Buildings 

The other way to not pay Capital Gains Tax When Selling Real Estate is to enter into a traditional 1031 exchange. The traditional 1031 exchange allows you to exchange like kind properties. You are still deferring capital gains tax when selling your commercial building, apartment building, or rental property. However, there are many stringent rules that the IRS mandates in order to successful avoid paying capital gains tax when selling property. Some of these rules include the 45 day identification rule. This rule states that you must identify 3 like kind properties within similar values within 45 days. Our clients often find this the most difficult rule to achieve. Another example of the 1031 exchange rules include the 180 day rule. This rule states that you must close the identified property within 180 days of your original close of escrow. There are many other stringent rules when it comes to the 1031 exchange with the IRS. If these rules are not satisfied, you will be subject to the capital gains tax when selling your property. Because of these rules, it is far easier to do a 1031 exchange DST than a traditional 1031 exchange. 


Avoid Paying Capital Gains Tax When Selling Property By Contacting Us Today

When can help you avoid paying capital gains tax when you sell your apartment building, rental property, or commercial building. A 1031 exchange DST is a quick and easy process that we can help with the entire way. Selling rental property, commercial buildings, or apartment buildings can be a stressful time. We want to help you Avoid Paying Capital Gains Tax Selling Real Estate buildings a stress free and as quickly as possible. To get started, get any of your questions answered, or to schedule an appointment, give us a call directly at 805-583-2720, fill out the form below, or email kyle@winthco.com. 

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