How to (legally) avoid taxes when selling a house

The video tutorial explains how to minimize capital gains taxes when selling a house. It presents a scenario of selling a condo and explores three main strategies: moving into the property to qualify for a tax exemption, using a 1031 exchange to defer taxes by purchasing a like-kind property, and documenting costs to reduce taxable gains. The video emphasizes the importance of choosing the right strategy based on individual circumstances and advises not to let tax concerns hinder real estate decisions.

What is the initial purchase price of the condo in the real-life scenario?

• $50,000

• $100,000

• $160,000

• $75,000

According to the IRS, how much capital gains can a married couple exclude when selling their home if they meet the requirements?

• $250,000

• $300,000

• $500,000

• $400,000

What is the primary requirement for a property to qualify for a 1031 exchange?

• It must be a primary residence.

• It must be located in the same city.

• It must be an investment property.

• It must be sold for a profit.

Which of the following is NOT a way to reduce capital gains taxes when selling a property?

• Documenting repair costs

• Performing a 1031 exchange

• Moving into the property for two years

• Ignoring tax implications

What should you do if you want to sell a property quickly but still be tax savvy?

• Ignore all tax implications

• Document all repair and renovation costs

• Sell the property at a loss

• Wait for the market to improve