Your profit (loss) is the difference between your purchase price and your sale price.
Notice that the presence or absence of financing has notthing to do with your profit calculation. Your profit is taxed at the applicable capital gains rate. Your tax liability is the same whether or not you have financing in place.
So to answer your question, refinacing before you sell just takes money for closing costs out of your pocket, but does not change your capital gains. Same with HELOC.
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I understand John T Reed has a good one at his website
I would be happy to forward a copy of the Section 1031 Tax-Deferred Exchange Reference Manual for you.
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Every Landlords Tax Deduction Guide by Nolo
http://www.amazon.com/gp/product/1413304214/qid=1151682984/sr=1-1/ref=sr_1_1/102-5001884-7854568?s=books&v=glance&n=283155
Your profit (loss) is the difference between your purchase price and your sale price.
Notice that the presence or absence of financing has notthing to do with your profit calculation. Your profit is taxed at the applicable capital gains rate. Your tax liability is the same whether or not you have financing in place.
So to answer your question, refinacing before you sell just takes money for closing costs out of your pocket, but does not change your capital gains. Same with HELOC.
so i guess thats a misconception.....
Yes, that is a misconception.
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