Cap Gains Tax And Tax DEED Properties?
Hello to all...I am wondering if capital gains tax can be avoided IF...I buy a property at a tax deed auction, sell it and use the profits to buy more tax deed props...?
I doubt it, but I thought it would be worth asking...lol
Thank you for any responses. Kara
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No, unfortunately these transactions are taxable.
[addsig]
Not Correct. You still have to report the sale and pay the taxes on the property assuming you are a US Citizen and have lived in the US for more than 6 months.
Sorry, but you will owe the tax. Failure to pay would result in interest and penalties and possible crimminal charges if they can prove that you knowingly and willfully refused to pay the tax.
[addsig]