💡 How To Avoid Capital Gains Tax On Rental Property - Clever.net

How To Avoid Capital Gains Tax On Rental Property

Can you sell a rental property and not pay capital gains?

Section 1031 of the Internal Revenue Code allows real estate investors who sell one investment property and purchase another 'like-kind' property to defer paying tax on capital gains and depreciation recapture on the property sold.

How to Avoid Capital Gains Tax on Rental Property in 2021

Is there a legal way to avoid capital gains tax?

If you hold an investment for more than a year before selling, your profit is typically considered a long-term gain and is taxed at a lower rate. You can minimize or avoid capital gains taxes by investing for the long term, using tax-advantaged retirement plans, and offsetting capital gains with capital losses.

Capital Gains Tax 101 - Investopedia