Tax Lien Profits
I originally posted this on the Tax Lien forum, where it was sugested that I also post it here.
A couple of years ago I started buying tax liens in Colorado. In a simplified nutshell the process is that you purchase a lien at auction and pay subsequent years taxes until the certificate is at least 3 years old. At that point you file for title and if the owner still fails to pay the taxes the treasurer issues you a deed. I have purchased about 60 liens since 2005 so I’ll probably wind up owning a couple.
My question deals with determining the capital gains when I sell the property. When does the holding period start? Would it be the date of the original certificate, the date I file for title or the date title is granted?
The day after the Treasurer issues you the deed.
What he said.
Thanks for the replies.
My CPA says he sells depressed stocks at y/e to capture losses. Why not Real Estate?
Anyone else have insight they are willing to share?
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