capital gains /reinvestments

[Greg Bacon]

I have a property that is fee and clear of mortgage. im renting it currently but am thinking on selling to 1) pay down some bills 2) get my real estate investing started. The thing I am concerned about is taxes. Is there a way to off set the capital gains if I only reinvest a portion of the money? Example my property $350,000.00 bills $150,00.00 reinvest $200,000.00. any help ?

Thank you

Greg Bacon

[Ashish Acharya]

Originally posted by @Greg Bacon:

I have a property that is fee and clear of mortgage. im renting it currently but am thinking on selling to 1) pay down some bills 2) get my real estate investing started. The thing I am concerned about is taxes. Is there a way to off set the capital gains if I only reinvest a portion of the money? Example my property $350,000.00 bills $150,00.00 reinvest $200,000.00. any help ?

Thank you

Greg Bacon

Looks like you already have a house, why not get a mortgage/ line of credit on this property and accomplish the same goals  as you mentioned above rather than selling the house. 

If you have to sell,  there are ways to defer capital gains but your funds will be tied up and your goals will not be met. 

If you get a mortgage on the house, you will have access the cash and there is no tax at all.