Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
1031 Exchanges
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 6 years ago,

User Stats

2
Posts
0
Votes
Joseph Key
  • Knoxville, TN
0
Votes |
2
Posts

Taxing non-capital gains?

Joseph Key
  • Knoxville, TN
Posted

I bought a rental property for 100k 14 months ago. I put roughly 20k into it in renovation expenses. For discussion, let's just say all other expenses sum to be 10k (interest expense, etc.) for a total of 30k in expenses. I'll begin to realize my gain after 130k. After paying on the note for a year the outstanding mortgage is 70k. 

A buyer is willing to pay 200k for the house giving me a gain of 70k. I want to buy a lot that costs 75k. Can I exchange the 70k gain from the rental property into the lot and avoid paying tax on it? Will I be taxed on the 60k (30k of equity and 30k of expenses) that I received back? Will I have to also exchange this into a new property?

thanks!

Loading replies...