Ask Experts Questions for FREE Help !
Ask
    arcy1950's Avatar
    arcy1950 Posts: 2, Reputation: 1
    New Member
     
    #1

    Feb 19, 2008, 01:33 PM
    Siblings selling shares to another sibling
    A long-held family vacation property was deeded to the siblings years ago.
    When selling shares to another sibling can I transfer the proceeds into an IRA
    Account rather than pay capital gains?

    If payment is made in installments when are the capital gains paid?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
     
    #2

    Feb 19, 2008, 02:05 PM
    Are you asking whether you can use the proceeds from your sibling will pay to fund your IRA? Sure you can - up to the annual limit of $4K (or $5K if you are 50 years or older). Can you somehow avoid capital gains on the sale? No. Can you transfer your portion of the property into your IRA, then sell it and thus avoid paying capital gains? Unfortunately not - you aren't allowed to transfer property you already own into your IRA. Here's an article that gives a good overview on the subject of real estate in an IRA:

    Ground your retirement fund with real estate - MSN Money
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
    Tax Expert
     
    #3

    Feb 23, 2008, 02:19 PM
    If the sale is on an installment basis, then the gain is recognized pro rata based on the amount of cash received. I believe it is Form 6252 that applies for installment sales.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
     
    #4

    Feb 23, 2008, 02:42 PM
    You do not "roll" it over, you can put that money into an account and take that credit. You will still have to claim the money from the sale but will be able to show an equal amount going into a retirement account

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

How to take care of siblings? [ 2 Answers ]

How to take care of a 8year old old sibling and 6months old sibling at once?:confused:

Shares applied for and shares alloted [ 2 Answers ]

I am a bit confused - the following is a question in my assignment: Xx Ltd was registered on 1 Jan with a capital of R80 000, divided into 10 000 5% preff shares @ R2.00 each, and 30 000 ordinary shares of R2.00 each. Preff shares were fully subscribed and duly allotted, but only 25 000 ordinary...

Sibling refuses to move from/sell home parent left to all 4 siblings [ 2 Answers ]

My mother passed away 6 years ago and willed the family home to her 4 children equally. Three of us have our own homes but brother, never married, has lived most of his 58 years in that home. He does not want to sell and continues to live there (a duplex, 6 rooms each side). He uses one side for...


View more questions Search