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Updated over 2 years ago,
Gains From a Investment Account to Transfer to Real Estate.
Hi everyone,
In order to start my real estate investing career and diversify my income streams from other than just my 9-5 and the stock market, I am planning on closing one of the personal investment accounts that I have and using that money as part of a down payment (I am still saving up) on an investment property. It is not a lot of money in the account and in the duration in which it has been open, it grew about $4k in gains which isn't much but it is still taxable gains nonetheless. I wanted to ask whether there are any tax breaks for gains made in the stock market that will be transferred to purchase a real estate property/investment? I'm thinking of maybe something similar to a 1031 exchange but instead of the capital gains coming from a property that I sold, it is coming from gains in the stock market? I apologize if this may seem like a silly question. I am still a newbie to REI and I am not familiar with the tax laws around it.
Thank you in advance and I look forward to interacting more with everyone in the BP community!