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How do I avoid paying capital gains tax?

Can I avoid paying capital gains tax? If so, how? I'm planning to sell and buy within the next year or so, but not immediately.
Asked By Darrel | Raleigh, NC | 313 views | Finance Legal Info | 1 year ago
Answer(4)
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Semi-Pro
27 Answers
Josephine & Raj Sharma

Legacy Homes Realty

(134)

Primary Residence Exemption: Many countries offer tax benefits for the sale of your primary residence. For example, in the United States, there is a provision that allows you to exclude up to a certain amount of capital gains ($250,000 for individuals, $500,000 for married couples filing jointly) from the sale of your primary residence if you meet certain ownership and use requirements. This means that if you live in the house for a specific period (usually at least 2 out of the last 5 years), you might not have to pay capital gains tax on the profit when you sell it. 1031 Exchange (USA Only): In the United States, a 1031 exchange allows you to defer capital gains tax when you sell an investment property and reinvest the proceeds into a like-kind property within a certain time frame. This essentially allows you to "swap" properties without immediately triggering a capital gains tax liability.
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Pro
123 Answers
Chris Yochum

Dickson Realty

(19)

Talk with a CPA and an experienced realtor in your market. It depends on if primary residence or investment. With investment properties you can do a 1031 exchange to defer taxes. Doing a 1031 exchange can be a great option.

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Semi-Pro
68 Answers
Julianne Clark / Your Lowcountry Realtor

Charter One Realty

(45)

Yes, you can potentially avoid paying capital gains tax through strategies like the Primary Residence Exclusion, 1031 exchange, or offsetting gains with losses. You really need to consult a certified tax professional for advice based on your particular situation.
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Rising Star
17 Answers
Nicole Parker

Dennis Realty & Investment Corporation

(17)

This question is best handled by your tax professional. That being said there are options for investment properties to be used in a 1031 exchange program. Speak to your CPA about your options.

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