Marie's Insights

Avoid Taxes on Investment Property

By June 15, 2017 No Comments

Is it really possible to avoid paying taxes on the gain of an investment property?

Many of my clients have established a high performing investment program for themselves using rental properties as leverage to create equity.  Here’s how it goes.

Buy a home that you live in for two years. Then purchase another property to live in and rent the first property for up to 3 years. Under the Capital gains exemption offered by the tax code, the gains on the property for that period qualify as tax exempt up to $250,000 for each spouse, provided they both lived in the property for 2 out of the past 5 years.

Take the profits from the sale of that property and purchase another property that you then live in for 2 years. Consult your CPA for advice on how many times you can continue this process.

By: Marie Callaway, Realtor & CEO of Callaway Group Real Estate

Marie Callaway

Author Marie Callaway

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