Rolling over Profit through Sale of Investment Property

Sam

Investment Property is a real estate, owned with the intention of earning a return from it. The owner does not live in the property.

For example, apartment building or a rental house.

Related Forum Discussion

Finance 90% LTV on Investment properties

helping_user

A 1031 tax deferred exchange on investment and income property allows you to roll over the profit from the sale of one investment property to another without being taxed. It is based on three conditions:

The net sale price of the relinquish property must be equal to or smaller than the purchase price of the replacement property.
The total amount received from the sale of the relinquish property must be used to purchase another investment property.
Both the investment properties must be of same type of property.

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