All Forum Posts by: Andrew Mykletun

Thanks @Jeremy Pakalka 

Hi BP members,

I am looking to sell SFH houses with capital losses in the double digits if I sell them now (just the situation that I am currently in). I bought them less than 1 year ago and could sell them now and realize short term capital losses. Alternatively, I could hold onto them a few more months until I have had them for more than a year, sell them and realize long term capital losses. I would prefer to sell them now if there is no significant difference; however, my question is: Which option is more favorable and why as I will be making investment in the future?

Any feedback from someone who knows about this would be appreciated.

Thank you,

Andrew

@Dave Foster, Thank you for your reply and useful information. I think your suggestion is a good one for my situation if I do indeed decide to purchase a more expensive SFH. The alternative of not buying another expensive property would be to sell both the positive capital gains rentals and negatives capital gains rentals at a recognized loss, but of course then I won't get the tax shelter on the positive capital gain rentals that you referred to.

Would you happen to know also if a stock market loss (if stocks sold of course) could be used to offset the real-estate capital gains?

Thanks again!

Andrew

Hi BP members,

I am looking to sell multiple SFH investment rentals, some that have will have positive capital gains, while others that will have some negative capital gains (just the situation that I am currently in). To avoid the capital gain taxes, I am planning either 1) Not doing a 1031 exchange and hoping that the negative capital gains will offset the positive capital gains by selling more rental properties, or 2) a 1031 Exchange and then to purchase a more expensive SFH rental. However, as I do not know the rules of what I can do well enough, I have a few questions below that I was hoping to get clarity on:

1. Would the negative capital gains offset the positive capital gains if I sell multiple rental properties, meaning that my overall capital gain tax would be less, regardless of whether I carry out a 1031 exchange?  If 'yes', I am guessing that as long as I sell the rental properties within the same year then the offset should apply?

2. Would the negative capital gains offset the positive capital gains if I sell multiple rental properties, meaning that my overall capital gain tax would be less, allowing me to then carry out a 1031 exchange on that difference?  If 'yes' within what time frame do I need to sell all those rental properties and then purchase another rental home in order to qualify for the 1031 Exchange?

3. I am assuming I would have to pay the 1031 Exchange fee on each rental properties sold or is there a way to bulk them together and pay the fee once? 

Any feedback from someone who has gone through this would be appreciated.

Thank you,

Andrew