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Updated 10 months ago, 03/06/2024
How will buying more rentals with cash out refi from existing rentals affect CG Tax?
I had a handful of properties that I cash out refinanced in 2021 to buy more properties. So I bought a few more using that cash. The properties went up in value a bit then back down due to interest rates going up. Right now if I sell them, I'd break even after transaction costs from selling. That is, the few new ones I bought in 2021 would basically give me my money back, maybe a little more, after factoring in transaction costs of selling.
How will that affect my capital gains taxes with 1) these NEW properties I bought with the CO refinance money and 2) how will it affect the houses I pulled money out of to buy these new ones?