All Forum Posts by: Andrew White

I’m selling a rental investment property I solely own (Property 1). I would like to avoid (uhmm...defer) capital gains tax by investing profits in another rental investment I own (Property 2)...basically reduce principal on current debt owed to bank, and this Property 2 is also more expensive (which means technically putting toward higher debt).  My question:

[Option A] Can I utilize the capital gain defer rule by simply re-financing Property 2 and applying (investing) Property 1 profits toward Property 2 principal?

[Option B] If Option A is no, can I re-purchase Property 2 under an LLC, (so technically it's a new investment purchase) and defer capital gain taxes from Property 1?

[Option C] Uncle Sam has me cornered, and I’m paying up now?

Thank you for the prompt feedback!

Hello,

I currently have contract to buy a duplex in Lexington, KY.  Two weeks into the loan/under writing process, the lender just told me the lot/structure is considered two townhouses, not a duplex (I confirmed he is correct per local PVA). 

Instead of one conventional loan, the lender now requires two separate loans (split total price) to purchase.  Downside is split single contract into two, double closing costs and increased mortgage insurance costs.

MY QUESTION:

Does this sound correct, or is the underwriter mistaken...Do multiple townhomes require their own individual loans for each single unit (even if apart of the same structure)?