Anonymous
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Investors & landlords

talk to a lawyer about doing a 1031 exchange.  in essence this requires you to invest the proceeds in other rental property.  any cash you receive will be partially taxable.  to avoid any income taxes all the proceeds must be held by an unrelated exchange trustee.  note that there are additional fees involved in doing an exchange.  also note that due to the capital gain exclusion, some of the gain might not be taxed at all.  but this depends on what your income will be for the year of sale.   TT has an estimated tax calculator so if you can enter all your expected income income and itemized deductions for 2018 with and without the $100K capital gain, you get an idea of what it will cost you in taxes  it may not be worth it due to the fess involved.  What I can't tell you is what the amount of those extra fees will be.   also don't forget that there will be costs in selling the property such as brokerage, professional, title cost, transfer fees, etc. that will reduce the taxable gain.     

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