Tax Lien Profits

I originally posted this on the Tax Lien forum, where it was sugested that I also post it here.

A couple of years ago I started buying tax liens in Colorado. In a simplified nutshell the process is that you purchase a lien at auction and pay subsequent years taxes until the certificate is at least 3 years old. At that point you file for title and if the owner still fails to pay the taxes the treasurer issues you a deed. I have purchased about 60 liens since 2005 so I’ll probably wind up owning a couple.

My question deals with determining the capital gains when I sell the property. When does the holding period start? Would it be the date of the original certificate, the date I file for title or the date title is granted?

The day after the Treasurer issues you the deed.

What he said.