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The difference is called “Boot,” which is the amount you will have to pay capital gains taxes on. Put simply, a property being sold is not subject to capital gains tax until it is eventually sold without reinvestment. It allows an American taxpayer to exchange one investment property for another while deferring the tax consequence of the sale. The exchange can include like-kind property exclusively or it can include like-kind property along with cash, liabilities and property that are not like-kind. Exchange Contracts Must be Assignable.
It is important, however, that the Purchase and Sale Agreements for both properties are assignable. Instant Downloa Mail Paper Copy or Hard Copy Delivery, Start and Order Now! Few investors have to calculate this figure on their own.
Industry-Specific Deductions. This wealth-building tool can help you sell one investment property and purchase another while deferring taxes, including federal capital gains taxes, state capital gains taxes, the recapture of depreciation and the newly implemented 3.