Here is how you can reduce your capital gains tax.
Many people don’t know this but a 1031 exchange form is something used by many real estate investors to help reduce their tax. When someone sells their house for a profit, this is known as a capital gain, and this is taxable.
How a 1031 works is it allows the seller to defer the capital gain when sell and buy so that the seller has extra money on hand that is not taxable. To reap the most benefit from this, the seller should look for a property of equal or higher value.
If you have any real estate questions, feel free to call me at (718) 767-8200. I would love to hear from you.
