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Updated almost 6 years ago on . Most recent reply
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Rollover capital gains into a 401k?
Is it possible to invest money from capital gains from the sale of a real estate investment property into a 401K to defer the tax on those capital gains?
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Michael Plaks
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If they really are capital gains - then no. But capital gains apply to selling rental properties.
If you're talking about a flip property, then it's not called capital gains. It's called business income. If there's still income left after all business expenses, then your flipping business can open a 401k plan (or some other retirement plan) and redirect some or all of the remaining profits into this plan.
There's more to it, so I'll throw in the standard advice: talk to a tax professional.