Possible to lower tax bill?

[Kenny Tran]

Hi everyone, I recently sold a house and made 80k net profit. Can I defer paying taxes on the 80k if I bought an investment property with the earnings? I currently am in the process of buying 2 properties and putting down a total of 50k. I am using the proceeds from the 80k to purchase these 2 investment properties but I dont know if its possible to lower my tax bill by purchasing these. 

[Dave Foster]

@Kenny Tran, The only way to make that work is with a 1031 exchange as @Joe Martella said.  But the 1031 must be started at the closing of the sale of your old property.  Unless you have a qualified intermediary for the 1031 in place prior to the sale you cannot later perform a 1031 exchange.

You might be able to create some accelerated or bonus depreciation on elements of your purchases that lessen your tax bill.  But that accelerated depreciation will have to be repaid unless you later do a 1031.