 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
Capital Gains vs Real Estate
If you have had a property longer than two years and decided you would llike to sell the property How I avoid paying capital gains tax or what if I start a Corporation and quick deed the property to the Corporation. What is the benefit of deeding rental property (Investment Property) to a C- Corporation, S-Corporation, LLC etc if I make myself the CEO/VP etc. Is there an advantage
|
||||
|
||||
|
Would not advise such a strategy, as the IRS will view it for it is, an attempt to evade taxation by transferring property to a related party.
NOTE: A related-party does NOT have to be a relative by blood or marriage. A related party can be a solely-owned corporation. |
||||
|
||||
|
I am not sure what you mean because before the property is sold the corporation at that time would have own the (Real Estate) for over 3 years, so again. How is does one avoid Capital Gains in terms of selling a home or other Real Estate bedcause my intentions are not to quik deed the property over to a corporation only for sale. My question is for future answers in regards to Capital Gains vs Real Estate.
|
||||
|
||||
|
Assuming you avoid the related-party trap I cited above, when you transfer the property to a corporation, it is a taxable event; capital gains taxes will be due. If you gift the property to the corporation, gift taxes will be due.
You really need to contact a local tax professional, preferably an enrolled agent or CPA, to discuss these issues in detail. This forum is too limited in scope to properly account for all the variable in such a complex real estate transaction. |
||||
| Question Tools | Search this Question |
Add your answer here.
Check out some similar questions!
In Sept 1999 I sold a piece of property. I did a 1031 exchange for a new piece of property that cost 299000.00. My basis in that exchange was 29000.00. In April 2006 I sold that piece of property. After closing costs and realtor costs the net profit was $512,000.00. Improvement costs, repair...
Hi, I would like to know how to calculate the capital gains taxes I will owe. I was recently bought out from a commercial property I was part owner of (50%). My father purchased the land in 1989 for $361,000 and in 1994 he quit claimed it to me and my two sisters, so I owned 1/3 of the property....
:confused: We are selling family property (178 acres & a house), to be split between 6 siblings. It will sell between $1 & $1.6 million. Will we have to pay Capitol Gains on 1/6 of the selling price, or the whole amount? Will we have to "buy up" to avoid Capitol Gains? We will be...
View more questions Search
|
