Everyday investors are avoiding capital gains taxes by applying 2 IRS rules

AP Photo/Bill Sikes

• Selling a property for profit typically results in paying capital gains tax.
• But there are ways to defer or avoid capital gains tax altogether.
• If you own property, look into 1031 exchanges and the Section 121 exclusion.

If you sell a property for more than you purchased it for, you'll typically owe capital gains tax on the profit.

The amount depends on factors like how long you owned the property and your taxable income, but it...