I want to sell an investment property and re-invest the equity in another property. Will I be taxed on the equity from the sale?
Bob from Northridge
Your tax advisor or CPA is the correct professional to consult for this situation. Ask about a 1031 exchange. This is when you take the equity, also known as capital gains, of your sale and defer tax by putting it toward the purchase of your new investment. There are strict guidelines that need to be followed, so do your research before you start the process, and make sure your realtor knows what your end goal is so all paperwork is completed correctly.
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