Looking to avoid capital gains on a house flip.
1031 exchange. If you sell rental or investment property, you can avoid capital gains and depreciation recapture taxes by rolling the proceeds of your sale into a similar type of investment within 180 days.One idea:
I have a rental property. Can I dump the money made on the house flip onto the principle of my current investment and avoid the capital gains tax? I figure I could do that, then refinance my investment property to a 15 year fixed and pull the money back out if I need to, or just leave it there. I have 20 years left on a 30 year fixed, 5.6%, so it might be worth wild to refi for a 15 year fixed to get a lower rate.Another Idea:
Put it all into a Roth or my 403B. I know I'm capped in this area, 8500 for the Roth, 18,000 for the 403B, I believe, but i'm wondering if that's an option?
I'm not interested in buying another investment property. The only reason I did this deal is because it was too good to pass up. I don't enjoy being a landlord in MA. Right now I'm renting my property well below market rate, while turning a very modest profit, because I have really good tenants that pay on time and keep the place nice.
I'm really interested in advice on this matter and to also hear what other people are doing to build their own wealth. Thanks