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Real Estate

Eileen M. Day REALTOR

LIKE FOR LIKE EXCHANGE

You own a rental property that has appreciated over dou ble in value. Now you want to buy another property ‘that has about the same current value. Would it make more sense to sell the first property and then buy the second?

Not really unless you want to pay unneeded capital gains tax... It would be wiser to con sider a tax free swap. In this way, you would not have to pay any gains tax on the trig profit you'll make on the origi nal property. In fact, you could keep the excess cash you re ceive over the deposit you'll need for the second property as a tax-free gift from Uncle Sam. A swap is a swap and

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