Capital gain taxes from Investment account

Creative Real Estate Financing
2yFollow

Capital gain taxes from Investment account

Aline Elad
Member since 2024 · 11 posts · 4 votes

Hi All,

Is it possible to avoid capital gain taxes if I use funds from an investment account to BRRR a property and then return all the funds to the account within the same year? What if I leave some in the deal, can I use 1031 in this case? I feel like I can't because those are apples and oranges but just thought I'd ask.

Truly appreciate everyone's help on support as always!

Aline

1Reply
21 views

3 Replies

Jump to latestLatest
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y

    @Aline Elad

    If you take funds from an investment account and sell that asset I believe you will owe taxes on that gain even if you reinvest that amount later

    If you took a loan against it then that may be different

    Not tax advice and not a cpa just sharing how it has worked for me in the past.

    7e investments53 Reviews
    WebsiteView Page
    0Reply
  • Nick Maugeri
    Real Estate Broker · Modesto, CA · Member since 2023 · 192 posts · 77 votes
    2y
    Quote from @Aline Elad:

    Hi All,

    Is it possible to avoid capital gain taxes if I use funds from an investment account to BRRR a property and then return all the funds to the account within the same year? What if I leave some in the deal, can I use 1031 in this case? I feel like I can't because those are apples and oranges but just thought I'd ask.

    Truly appreciate everyone's help on support as always!

    Aline


    If you don't sell the property then there are no capital gains taxes and no need to 1031. Are you meaning an investment account as in self directed IRA?

    0Reply
  • Bill HamptonBusiness Member
    Accredited Investment Fiduciary, AIF®, Financial Planner, Tax Strategist, Real Estate Investor · Atlanta, GA · Member since 2012 · 2k+ posts · 978 votes
    2y

    @Aline Elad

    Transferring money from a brokerage account to real estate does not avoid capital gains taxes. 

    I recommend working with a tax strategist to develop and implement strategies to reduce your tax obligations. 

    Good luck. 

    404-482-3170
    Hampton Tax and Financial Services LLC4.7106 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free