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Can I transfer proceeds from an Investment property to another without being taxed?

I currrently own 2 properties and I'm interested in selling one of them. My question is can I take the proceeds from the sale and investment it to the other property (paying down a mortgage, paying off a second mortgage) and defer the capital gains taxes?

Public Comments

1. Just do it. The people at the IRS don't know their ass from their elbow.
2. You need to find a qualified 1031 exchange administrator to assist you with this. The simple version: You sell your property, and within 30-60 days must identify a new "like-kind" property to purchase. Like-kind means any real property is equal to any real property, in most cases, you could exchange raw land for an apartment building. Your sales proceeds are held with the 1031 administrator, and they put your money down when you close on the new property, which must be within 6 months. This will defer your capital gains. You will of course have to pay the 1031 guys, but ultimately it's a great deal. Ask them about how to eventually take all your deferred capital gains and purchase a single-family home for rent. I've heard you can do that, rent it for a year or two, then move into it as your primary residence and never pay tax on that money, ever. And it's all supposed to be perfectly legal. I've had clients using the 1031 program, it's complex but effective. Title companies are required to file a 1099 when you sell a home to the IRS, so YES THE IRS WILL KNOW!!! Ignore the idiot who said that.
3. As long as you are keeping the proceeds into investment properties there is no problem. Also, you have two years to re-invest that money. www.realestaterelocatorsandmore.com