ANSWERS: 1
  • If you are planning on reinvesting the proceeds from the sale of that house to purchase another investment property, you should look into doing a 1031 exchange (Section 1031 tax deferred exchange). You can 1031 just your 1/2 ownership. Section 1031 of the IRS Tax Code allows you to defer the capital gains tax on income, investment, and/or business property when you use the proceeds from the sale of the property to purcahse another investment property. You should contact a 1031 professional, known as Qualified Intermediaries, if you want more information on this - www.1031taxinfo.com has great information on 1031 exchanges as well.

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