Short Sales and Capital Gains Taxes??

Foreclosures, Short Sales, Tax Foreclosures
1

I was reading about doing short sales in a book and it was brought up that if a person were to buy a property through a short sale and put a new mortgage on it, that person would have to keep the mortgage for at least 6 months before they could sell it. This is because they would be it with a capital gains tax.

Question??

Wouldn’t any person be hit with a capital gains tax if they sold the property regardless if they sell it before 6 months or even if they held the property for 2-3 years or longer?

I thought unless you exchanged the property ex.(1031) that person who sold the property would be hit with a capital gains tax.

If I am wrong about this could somebody help to clear this up for me.

Thanks, Joe

2

If you keep the property for a year, capital gains tax are limited to 15% maximum on the profit, if you sell before, profits are counted as income and taxes are applied using your marginal tax rate.