Sell Of Rental Property And Taxes
newbie question...any tax shelters of selling rental property for a $40k profit and buying down the mortgage of another rental I have? Thanks in advance.
newbie question...any tax shelters of selling rental property for a $40k profit and buying down the mortgage of another rental I have? Thanks in advance.
No. In the situation you describe, the sale of your rental property is a taxable event regardless of what you do with the money afterward.
The sale of rental property and the paydown of a mortgage (debt) would not qualify for 1031 exchange treatment. You have to sell real estate and acquire real estate. The paydown of an existing debt is not a real property interest.
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