When Form 4797 Exchanges 2022-2023

Instructions and Help about When Form 4797 Exchanges

The 1031 exchange tax-free real estate investing I'm Phil I see freedom intercom I'm a full-time real estate investor real estate mentor and coach to many of the most successful real estate investors across North America and in this video I'm going to introduce to you and take you in depth into the subject of the 1031 exchange 1031 exchange is a section of the united states tax code you guessed it section 1031 which describes how a real estate investor can buy a piece of real estate for intent of investing in that and then after a couple of years they can resell that property and whatever gains they made those gains are not actually taxed their tax deferred if you will and that money can be used but it must be used to buy another property so let me try to illustrate this it would be like you owning a house and then you'd have to have it as a rental and let's say you've owned it for at least two years um you could sell this house now let's say when you bought it let's say you bought it for $80,000 but let's say it's been two years later and you are going to sell it for a hundred thousand so you have a gain of twenty thousand now these days there are several taxes that could play a role in this twenty thousand dollar gain obviously we have what's called capital gains tax capital gains tax but you also may run into depreciation recapture if you are uh claiming depreciation on that property when you hound it another thing is you may have local to your state you may have additional taxes there and also if you make over $250,000 a year you may run into...