Capital Expenditures (CAPEX)
Capital Expenditures are generally related to upgrades or material improvements to a single family rental investment property or other property type (new appliances, a new roof, upgrades to existing facilities, etc) that will have a useful benefit beyond the current tax year. CAPEX does not include Repair and Maintenance (R&M) expenses.
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This sizing gives you info about the value of replacement properties you need to purchase and the amount of related debt on this purchase to fully defer your capital gains associated tax liability.
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