Capital Gains Tax - Bought less than a year ago and need to sell

[Ashley Davis]

Hi all! CAPITAL GAINS TAX — NEED HELP! 🙏

I bought my first investment property in August 2018. paid $152k and have put in about $20k in renovations. It's currently rented for $1600 a month and I have it listed for $252k (comps are at like $230k.) So less than a year.... (Miami, FL)

My plan was to hold for a few years while it's rented out BUT my situation has changed and I need my mom closer due to health reasons. I have decided to sell so I could buy her a place close to me. 

If I sell my property and buy her a place, what are the rules associated to avoid capital gains tax? Time frame? Can it even be 100% avoided? Is there a calculator I can find somewhere to help figure out the tax? Or as long as I buy right away, I'm good? 🤔

Any info would be very much appreciated! You guys rock! I will get back on the investment game once mom is all set! 

— Ashley from Miami 🌴

[Jack V. Ospina]

@Ashley Davis A 1031 exchange is probably your best bet. You'll have 180 days to close on a new property after you sell the first one and can avoid paying capital gain taxes. A title company might be able to help you with this process from beginning to end. Good luck!