Form 1031
Really loving this site guys thanks.
Since this is the wholesale forum i thought id ask this here:
If you sell a property and fill out one of these forms..it keeps you from paying taxes on your capital gains correct? I
ve read you have to buy a property worth MORE than the one youve sold to use this.
Does this make sense?
Is there a time limit from one house to the next?
[addsig]
You have the right idea but its an IRS regulation - not a form. Complex process - you can read yourself - library - CFR 1.1031 - about 30 pages long. It is summarized in most books on real estate investing.
Oh IRS...so this is strictly a US policy...let me guess-->not able to do in Canada
[addsig]
Canada may have a similar law. The 1031 regulation allows you to sell a business asset and buy a replacement and not pay tax on the gain on the sold item. Tax will come on ultimate sale where the item is not replaced. Applies to trucks, houses, businesses, etc. Ask your tax advisor.