Real estate has some amazing tax advantages, but you can still end up paying a lot in taxes to the IRS when you sell a property. Owning rental properties allows you to depreciate the structure of the property, but when you sell you may have to repay that tax savings. 1031 exchanges can be a way to defer the taxes when you sell rentals, but they come with many restrictions. 1031 exchanges cannot usually be used when you flip houses either. Bruce Jones with TaxWealth is an expert on real estate taxes and joins me on this episode of the InvestFourMore Real Estate Podcast to discuss strategies to reduce taxes on flips and rentals without doing a 1031 exchange.
