Do You Have a Real Estate Related Question? I Will Email You an Answer Quickly.
 

When you buy an investment property, there are two important financial goals to consider. You will want a property capable of producing rental income. When you sell, you hope that the property will have appreciated enough that you will earn a good profit on your investment. If your property has enjoyed a healthy appreciation, you may need to do some careful planning to avoid paying out most of your profits in the form of capital gains taxes.

When selling your primary residence, you may be able to defer your capital gains taxes when you buy your next home. This does not apply, however, to investment property. If you sell one property then purchase another, the taxes will be due for the year the sale occurred. On the other hand, if you arrange to trade one property for another, you may be able to defer the capital gains tax.

It is not as complicated as it sounds! Many real estate agents and attorneys specialize in helping their clients put these kind of transactions together. You don't have to trade buildings with the people buying your property. The property you trade may belong to a third party, and your buyers need only cooperate with the closing attorney to make the transaction work.

	See All Tips In The "Investment Real Estate" Category >
	See Complete Library Of Hundreds Of Tips In 30+ Categories >

FEATURED PROPERTY

4905 Jasmine Drive - FLOWER VALLEY
You will not want to miss this spectacular Flower Valley home backing to woods and creek on a 3/4 acre lot and offering a main level guest suite addition with full bath, kitchen with Corian and cherry cabinets, level
Location: 4905 Jasmine Drive, Rockville, MD 20853
Price: $775,000 AVAILABLE
VIEW THIS PROPERTY
VIEW ALL PROPERTIES

See the Nation's Top Rated: School Reports - Public, Private & Charter >