Capital Gains

The speaker discusses how a 1031 exchange can bypass any capital gains taxes that would result from gains on a property held for less than 2 years.  She also mentions how a 1031 exchange can recapture depreciation tax.

The speaker provides a very basic definition of capital gains tax and distinguishes between short term and long term capital gains. 

The speaker discusses the capital gains taxes on mutual funds this year.  Even though most mutual funds are down, some investors may have actually sold their funds at a gain throughout the year and this may create a taxable burden in non-retirement accounts.  Additionally, some funds may actually sell of some of their winning positions, while holding their losers.  This may work out to generate a taxable item as well.