Tax Gains ?

[Winni_Bay]

Hello
We flipped a few properties on the lake within the last 10 years what we did to avoid paying capital gains was to do a 1031 exchange it rolls over the capital gain into the next property as long as that property was worth more than the one you sold and is considered a like-kind property
We recently sold the place in Laconia and I didn't have enough time to do a like-kind Exchange 1031 so I had to pay the capital gain and recently just purchased a waterfront in moultonborough I could not find a place in time to do the 1031 exchange you have to enroll that money into an account when you sell and then use it to purchase within a certain amount of time
So you will have to pay Capital Gains on what you sold if it was not your primary residence I'm not a CPA but that's what happened with us over the course of three properties in 10 years
Good luck in your search for a new property
Dave

[Shreddy]

Originally Posted by Winni_Bay

Hello
We flipped a few properties on the lake within the last 10 years what we did to avoid paying capital gains was to do a 1031 exchange it rolls over the capital gain into the next property as long as that property was worth more than the one you sold and is considered a like-kind property
We recently sold the place in Laconia and I didn't have enough time to do a like-kind Exchange 1031 so I had to pay the capital gain and recently just purchased a waterfront in moultonborough I could not find a place in time to do the 1031 exchange you have to enroll that money into an account when you sell and then use it to purchase within a certain amount of time
So you will have to pay Capital Gains on what you sold if it was not your primary residence I'm not a CPA but that's what happened with us over the course of three properties in 10 years
Good luck in your search for a new property
Dave

For a 1031 like-kind exchange to apply the property exchanged generally needs to be "trade or business" property (e.g., a rental property). Thus, given the fact that it was a second home and not rented, likely not able to qualify unfortunately.

[joey2665]

Originally Posted by Shreddy

For a 1031 like-kind exchange to apply the property exchanged generally needs to be "trade or business" property (e.g., a rental property). Thus, given the fact that it was a second home and not rented, likely not able to qualify unfortunately.

You are correct, it is not eligible for a 1031 exchange.