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I sold some stock. Invested the proceeds from the sale into real estate for rental property. Do I have to claim the Capitol Gains? Or, how is the best way to handle it?
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The gains must be reported. (I hope you kept some of the cash!) There is no provision in the tax code for reinvestment of proceeds of a stock sale into real estate to defer taxes.

(The only way to sell publicly traded securites and defer the gain is to reinvest the proceeds in Specialized Small Business Investment Companies...)
Does anybody know if there's a market for these SSBIC's? I doubt they'd make Foolworthy investments if we could find them.
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[[I sold some stock. Invested the proceeds from the sale into real estate for rental property. Do I
have to claim the Capitol Gains? Or, how is the best way to handle it?]]

If you sold the stock, you must report the gain or loss in the year that the shares were sold. There is no provision for you to "roll over" the gain on the sale into real property.

TMF Taxes
Roy
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