How to LEGALLY Pay 0% Capital Gains Tax on Real Estate

Is it legally possible to pay 0% capital gains tax on real estate? In this video, I'll show you how to legally pay 0% capital gains tax on real estate purchases.

"You can have income but still be at zero." 6:52

This video is for people buying or selling a property who want to avoid paying capital gains. I'll explain everything you need to know about capital gains tax and how to avoid paying it legally. I'll also give you some tips on how to make the most of your real estate transactions!

You're in luck if you want to avoid paying capital gains tax on your real estate investments! You'll be able to avoid paying thousands of dollars in taxes on your real estate investments by following the rules provided here.

To do this, you must understand the definition of capital gains and how it applies to your transactions.

Capital gains are the difference between the cost basis of a property and its sale price. Capital gains tax is based on this difference, and it can be significant if you neglect to take the proper steps.

Not only will this save you money on your taxes, but it will also save you time and hassle!

If you have any questions regarding capital gains tax or other investment strategies, then be sure to comment below.

Show Notes:
0:00 Intro
0:45 Depreciation
2:36 121 Exclusion
4:34 Tax Bracket
7:23 1031 Exchange
10:18 Outro
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ABOUT TOBY MATHIS
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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.

#capitalgains #taxes

[Wolvenstar]

Well, now those are really good to know and to consider. Thank you once again.

[tracyblack]

I just did a 1031 exchange. I sold a duplex in Florida that I bought for $300, 000 and sold for 665, 000 and cleared $620, 000 and bought two homes in Texas for a total of $640, 000 plus closing cost. I did it through a 1031 exchange company.

[lseh]

I really like you. Trustworthy lawyer accountant.

[addyz-hoow]

Thanks for sharing your knowledge Toby. I really enjoy watching your videos . Addy

[stevehernandez]

Every time I watch a YouTube video of yours, this Mexican learns something 😂😂. Thank you Toby

[gracielaherrera]

Thank you for the videos! I am leaning and is beneficial for me. How do I get myself down to zero percent tax bracket for my 2023 income tax? I have capital gains of $92, 000 for an investment house I already sold. Thank you!

[HapiestLitttlePlaceInTheGalaxy]

There's a 4th way, a superior way. If you have a Non Grantor, Irrevocable, Complex, Discretionary Trust with a Spendthrift Provision and sell your assets into it, all expenses of said assets are covered by the trust and all capital gains are non taxable events per IRC 643(b). This also applies to all passive income like stock sales, crypto gains, , not just real estate (applies to primary, secondary, rentals, etc) and you don't have to worry about recaptures, 1031 exchanges, etc. Not legal advice, do your own due diligence. Worth looking into. Be advised, this is a copyrighted trust, so make sure whoever creates it is authorized to sell it to you.

[juliecollamore]

When you sell your primary home for a profit doesn’t the gain get added to your adjusted gross Income which would push you into another tax bracket?

[wendycc]

Great info. again. First video I ever watched, I shared.

[joanzach]

We were able to sell an investment property in 2021 and because our adjusted gross income was below the taxable threshold we owed no tax on it. We have 2 more investment properties and I’m trying to figure out how to avoid as much tax as possible. Our primary residence has increased well over a million. We don’t have children that we can leave property to and we are reaching an age where the 3 homes are a lot to maintain. Trying to see when and how to divest.

[atlasfueloilinc.]

(NYC) Sounds great but my wife and I bought our house for 210, 000 and it’s worth between 1.6m - 1.8m (28 yrs later) all paid off, never rented always my family use. Never took any deductions except mortgage interest. I know about the 121 but still have about 700, 000Gain. Can I sell or gift a portion of the property to my 3 adult children. I make 125, 000 a yr and I would like to sell but not lose a ton in capital gains. How would you structure a sale that benefits my family. Thank you. Eric

[KurtKoster-st]

250, 000 ain't shit 40 years in my house 600, 000 gain for me, can't afford to sell and buy a bigger house or downsize greedy government and they can't balance there budget

[kevinmccfp]

How does capital gains tax work if I have an investment property that’s been depreciated and I move into it as a primary residence I live in it for two years and then sell it. One do I have to recapture the depreciation and two is capital gains tax on the difference in value over recapture the depreciation?

[timothybracken]

How do you not pay taxes on a partnership level ?

[unipulsemedia]

​ @TobyMathis Thanks for the informative video, Does the replacement property have to be similar in nature. E.g. I sell my primary residence with a capital gain of 600k, but I re-invest that money into an investment property within 30 day, but it won't be my primary residence, will I still be able to avoid capital gains tax.

[Daily.Time.pass.videos]

If I sell my property so can I account interest & renovating property in to my capital amount to reduce gain on value?

Also can you just invest gain amount only in another property and not capital from first property to avoid paying tax?

[makiavelli]

Does the property that one buys to reinvest their money in have to be in the USA...say a place in Thailand that becomes rental property?

[mpdbzdv]

Why would you have depreciation recapture on a primary residence that you live in 2 of the last 5 years (meaning you rented it) when you sell it? (8:07)?

[ToddBizCoach]

Comment on saving on capital gains by doing an installment sale.

[CharityBohlen]

In terms of improvements, what if you did not maintain accurate records of substantial upgrades done over 14 years?