How to Avoid Paying Capital Gains Tax When Selling Income Property

When selling income property you always need to think about the tax consequences involved.  The most common way to avoid paying capital gains tax on the sale of income property is to do a 1031 tax exchange.  from the day you close escrow on the property you are selling you have 180 days to close escrow on the property you are purchasing, however, you only have 45 days to name the property you are going to purchase.  When escrow closes on the property you are selling the money must go directly to a third party called an Accommodator who holds the money until escrow closes on the property you are buying.  It is important that you never have control over any  of the money.  the property you purchase must be of equal or greater value than the one you sell.   You may sell one property and buy several or sell several properties and buy one.  Either way the total value of the properties your are purchasing must be equal or greater than the total value of the property or properties you are selling.  This is a complicated subject and I cannot address all the details here so if you have any questions please don't hesitate to call me.  If I don't have the answers I will refer you to someone of does.