Newbee Advice
Just a quick qustion, I just bought my first property in cincinnati and after clean up and work is done, when i go to sell it, what should i do with the profit to avoid giving it all to uncle sam?
Just a quick qustion, I just bought my first property in cincinnati and after clean up and work is done, when i go to sell it, what should i do with the profit to avoid giving it all to uncle sam?
Section 1031 Exchange
Get a renter for 1 year and a day and then sell it and only pay capital gains taxes to the feds + state tax, or do a 1031 exchnage to defer the taxes into another property.
If you are simply fixing up a place and immediately selling it, you could be looking at paying 50% of the profit in taxes.
1031 Exchange could work as long as you have the intent to hold your property for investment . The 12 months plus is a good recommendation. See article at: http://www.thecreativeinvestor.com/commercial/modules.php?name=Articles&file=article&articleid=572
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I have just recently found this site, so I am not sure if you are still checking this post.
I just recently finished my own rehab and would be interested in partnering up with someone. Curious to see how this project worked out for you.