Capital Gains and 1031 Exchange

[Drew Davis]

Hello everyone,

I was wondering what the best way for me to avoid capital gains on a property I bought 6 months ago. What are some options? 

Thanks,

-Drew

[Dave Foster]

@Drew Davis, The easiest way to avoid capital gains is to not sell :). Or if you sell do a 1031 exchange if you're wanting to buy something else.  Your hold period is rather short for a property to qualify for a 1031.  Properties that qualify have been purchased with the intent of holding.  And most folks feel comfortable with anything more than a year.  

But there could always be specific circumstances where a hold of less than (or more than) a year might be appropriate.  The key is your specific circumstances - what your intent was and how. you can demonstrate it.

Are you just needing cash - then refi.  That's not a taxable event.