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Updated almost 4 years ago,
Rental Equity Tax Choices to pay off personal property
Hello everybody, I currently have a SFH rental property in Washington State with about $250K in equity. I am wanting to sell this property to pay off my current personal residence. I understand capital gains tax will be about 15-20%. I understand I could do a 1031 exchange but that requires the proceeds go to another investment property. Is it legal to refinance or pull out a HELOC to get the equity out of the house before I sell it? I was thinking of getting a HELOC and pulling out the money when I get an offer to sell. Are there any other ways to get around paying the capital gains tax or lower the tax burden? Thanks for any offered advice!
V/r
Jeremy