Defer paying Federal income tax to buy property

Defer paying Federal income tax to buy property

One of the best ways to defer paying federal income taxes while investing in real estate is by buying and selling properties and using a 1031 tax deferred exchange mechanism. 1031 exchange allows you to sell an investment piece of real estate and buy a subsequent piece of real estate of equal or greater value and not pay federal income taxes on the sale. Just make sure the sale and the purchase are within 45 days of each other. Learn how to defer paying federal income taxes by purchasing real estate property by watching this video tutorial.

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