> The fun little trick to this is you have to find a new property within 45 days of selling the previous property to keep the tax deferral benefits.
This is a 1031 exchange [0], when selling a business and buying a "like" business -- if you can identify the new one within 45 days of selling the old and close within 180, you can defer (not avoid) the long term gains on the deal. So let's say you bought a gas station in a crappy part of town, but you want to sell it and buy a bigger/better/more profitable one by the highway, this is how you do it. If your "business" is rental housing, then you can do the same thing.
Tax evasion is illegal, tax avoidance isn't. Why would you want to pay 15-20% long term gains tax on your gas-station trade-up if you didn't need to?
> Unfortunately, the landlords have increased their rents to correspond with local housing prices, and normal hardworking people are getting squeezed more than they ever have been.
It's just supply and demand -- capitalism at work. I don't think that many landlords are altruistic enough to not want match their rates to the "competition" (in this case housing prices).
This is a 1031 exchange [0], when selling a business and buying a "like" business -- if you can identify the new one within 45 days of selling the old and close within 180, you can defer (not avoid) the long term gains on the deal. So let's say you bought a gas station in a crappy part of town, but you want to sell it and buy a bigger/better/more profitable one by the highway, this is how you do it. If your "business" is rental housing, then you can do the same thing.
Tax evasion is illegal, tax avoidance isn't. Why would you want to pay 15-20% long term gains tax on your gas-station trade-up if you didn't need to?
> Unfortunately, the landlords have increased their rents to correspond with local housing prices, and normal hardworking people are getting squeezed more than they ever have been.
It's just supply and demand -- capitalism at work. I don't think that many landlords are altruistic enough to not want match their rates to the "competition" (in this case housing prices).
[0] https://www.investopedia.com/financial-edge/0110/10-things-t...