by Arthur on April 3rd, 2007

Arthur

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Are there other ways to not pay capital gains other than using a 1031 exchange to reinvest in other property? In other words, are there other investment options to invest the money elsewhere and not pay capital gains tax?

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  • by ccsolheim on February 28th, 2008

    ccsolheim

    As far as I know, there are not any other options that defer capital gains tax in a similar way to a 1031 excahnge.

    Is there a reason why you do not want to do a 1031 exchage? I.e. are you looking to get out real estate investing all together? Or, are you not wanting to have to manage investment properties and shelter the risk of owning investment properties?

    If you are interested in investing in real estate to some extent, but do not want to manage the properties, you may want to look into a TIC property. You can reinvest your sale proceeds in a 1031 exchange into a Tenant-in-Common property interest. Basically, a TIC property requires a smaller individual investment and many individual investments are pooled together in the ownership of one large property (for example, an office building). So, you own a small undivided interest in a large building and make a return on your investment, but all the management is handled by a management company.

    You can check out http://www.1031propertywatch.com/ or http://www.capharbor.com for more info on TICS (FYI - since TIC interests are regulated like securities, they are required to have web site visitors to have usernames and passwords to view their content).

    You can check out http://www.1031taxinfo.com for more info on 1031 exchanges, and you can also email me at chloe@1031taxinfo.com and I can sent you information on 1031s and/or TICs.

    Hope that is helpful!

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