Posted by Mike S. on May 31, 2009 at 15:53:44:
In Reply to: Re: One more thought posted by Mike on May 31, 2009 at 05:50:31:
When you sell, you have 45 days from the closing date to identify up to 3 properties. You then have 180 days from the closing date to close on one of those 3 choices. In my case I would pay capital gains on the gain as well as the depreciation recapture dating back to a previous property I owned prior to the one I just sold. (because I did a 1031 exchange at that time) If I buy one of the 3 that I identified...No capital gains.
I have no experience with flips so perhaps another can answer your question better, but I understand flips are taxed as ordinary income due to the short term hold. (flippers please correct me) I'm not sure if there is a way to shelter the income, but with the long term holds that I do, you have to move into a "like kind" property. No stocks, bonds etc.
Thats all I have.
Mike S.
P.S. Thanks again to Ray for answering my questions in detail. It's good to get input from a pro.