To Sell Or Not To Sell.....
This past December i purchaces a single fam. home in Brattleboro Vt. for the purpose of rehab and sell. i own 3 rental properties but this is the first time ive atempted the buy, fix, sell formula.... My question is: if i sell with in the first year i believe i pay straight personal income tax, and if thats correct how much different would the taxes be if i rented it, waited a year or 2 before i sold it and paid the the long term capital gains.....the thing is in the research ive done i dont see much of a difference, or am i missing something here?..... thanks for any and all help..
thanks for the reply! but could someone please explain how i would be able to defer capital gains with rental income? Thanks again!
For rental property only, you have the option to use a 1031 exchange.
In a nutshell, you can sell a rental property, take all the money from the sale and roll it into another property. This allows you to (for instance) sell multiple rental properties and buy an apartment complex. Or simply sell and buy a rental that you really want.
that is a very compact nutshell. There are a lot of stipulations in regards to the 1031 exchange. Do some reading up on it before you sell your place. That said, it is a great tool to defer your capital gains indefinately.
Marc
time for a new lender? local/regional bank or c/u?
Already down the road with the lender but my mortgage broker tried X lenders. Thanks
Is there anybody who knows if there is a tax effect?[ Edited by Cornell81 on Date 05/04/2005 ]
I guess it all comes down to rates and terms. In order to get mid 6% and 80% cash out, the bank my broker has me using is make me qc.
Name of the bank that will let s corp refi for 80%? I am tied to this broker for this one but it is becoming a huge a__ache up to this point.
I just discovered last night that I will definitely be hit with a cap gains charge if I qc property to my name.
Ray, are there lenders out there that are competitive to keep deed in S Corp name but allow personal guarantee of loan? This is a refi stated income 772 FICO score. Duplex rental.
Thanks Since I am new to site, would you send your email address?