Calif avoid Capital Gain (by Evie [TX]) May 20, 2022 2:28 PM
Calif avoid Capital Gain (by evie [TX]) May 20, 2022 2:29 PM
Calif avoid Capital Gain (by S i d [MO]) May 20, 2022 2:56 PM
Calif avoid Capital Gain (by Jason [VA]) May 20, 2022 4:12 PM
Calif avoid Capital Gain (by WMH [NC]) May 20, 2022 4:44 PM
Calif avoid Capital Gain (by Oregon Woodsmoke [ID]) May 20, 2022 6:03 PM
Calif avoid Capital Gain (by Richard [MI]) May 20, 2022 7:11 PM
Calif avoid Capital Gain (by 6x6 [TN]) May 20, 2022 9:09 PM
Calif avoid Capital Gain (by LordZen [MA]) May 20, 2022 10:03 PM
Calif avoid Capital Gain (by Robert J [CA]) May 21, 2022 4:20 AM
Calif avoid Capital Gain (by Ray-N-Pa [PA]) May 21, 2022 11:17 AM
Calif avoid Capital Gain (by Don [PA]) May 21, 2022 11:19 PM
Calif avoid Capital Gain (by evie [CA]) May 23, 2022 1:37 AM
Calif avoid Capital Gain (by evie [TX]) May 23, 2022 1:40 AM
Calif avoid Capital Gain (by don [PA]) May 24, 2022 6:16 PM
Calif avoid Capital Gain (by Evie [TX]) Posted on: May 20, 2022 2:28 PM Message:
How to avoid capital gains on sale of rental property? Don't want to buy another. Anyone have ideas? way to roll into primary res with out pay large $ to tax guy? --99.190.xxx.xx |
Calif avoid Capital Gain (by evie [TX]) Posted on: May 20, 2022 2:29 PM Message:
CPA has not been helpful. --99.190.xxx.xx |
Calif avoid Capital Gain (by S i d [MO]) Posted on: May 20, 2022 2:56 PM Message:
Unforunately, there are only 2 ways I know to avoid or eliminate capital gains (legally).
1) Incur so many losses on other investments that it entirely wipes out the profit when you sell.
2) Die and leave the property to your heirs who will receive it on a stepped-up basis.
I think the reason your CPA is unhelpful is that there is a not any "helpful" solution to this: you're going to pay the taxes if you wish to reap the rewards of your good investment.
Now....here's a thought.
Some folks advocate BORROWING the money out of the property. With a cash-out refinance, you can potentially pull up to 85% of the appraised value out. Of course, this only works if you still want to be a land lord and you're comfy adding a huge debt to your plate. --184.4.xx.xx |
Calif avoid Capital Gain (by Jason [VA]) Posted on: May 20, 2022 4:12 PM Message:
You used to be able to reduce your tax liability by moving into it for two years. I don't know how much those rules have changed over they years. --73.177.xxx.xx |
Calif avoid Capital Gain (by WMH [NC]) Posted on: May 20, 2022 4:44 PM Message:
Jason, completely changed! Now it's based on how long it was a rental vs. how long it was your home. The two-out-of-five rule is out the window. --50.82.xxx.xxx |
Calif avoid Capital Gain (by Oregon Woodsmoke [ID]) Posted on: May 20, 2022 6:03 PM Message:
You could 1031 into some sort of qualifying real estate that is not a residential rental.
Or you could 1031 into a vacation rental and convert that into your private use after two years of renting it out.
At some point the tax will come due. You can postpone it for awhile, that's all. --76.178.xxx.xxx |
Calif avoid Capital Gain (by Richard [MI]) Posted on: May 20, 2022 7:11 PM Message:
Opportunity zones. Check it out. Just buy land, farmland, or maybe, if allowed, into a REIT that manages certain type properties. --24.180.xx.xx |
Calif avoid Capital Gain (by 6x6 [TN]) Posted on: May 20, 2022 9:09 PM Message:
Following. --73.120.xx.xxx |
Calif avoid Capital Gain (by LordZen [MA]) Posted on: May 20, 2022 10:03 PM Message:
Interesting, taking notes --98.216.xx.xxx |
Calif avoid Capital Gain (by Robert J [CA]) Posted on: May 21, 2022 4:20 AM Message:
Sell and carry the mortgage, called an installment sale. Take under 29% down, and then you pay capital gains and recapture tax as you receive the principal. The interest is taxed as income.
Or do a 1031 exchange, taking money out latter on down the road. This is what a Tax Advisor who is a CPA and expert in Real Estate. You pay this kind of guy for a consultation then a plan--between $500 to $2000. This can save you millions in taxes. Well worth it!
--47.155.xx.xxx |
Calif avoid Capital Gain (by Ray-N-Pa [PA]) Posted on: May 21, 2022 11:17 AM Message:
Another path is to do a 170 sale to a non-profit.
I am a fan of 1031's but they are hard to get uplegs completed where they make sense --24.101.xxx.xxx |
Calif avoid Capital Gain (by Don [PA]) Posted on: May 21, 2022 11:19 PM Message:
Wmh--- if the property was originally your residence before you made it a rental property then the two year out of five year rule still gives you the 250k/500k cap gain exclusion still applies without pro-rating. --73.194.xxx.xxx |
Calif avoid Capital Gain (by evie [CA]) Posted on: May 23, 2022 1:37 AM Message:
Richard, Thanks for bring to my attention buying in opportunity zone and REIT. Just looked it up. Thanks
Ray- never heard of 170 till now. thanks
Robert CA- Installment sale. Good idea, we may have a lead on that. Thanks
Thanks SID and Oregon. We have many new strategies to investigate.
--99.190.xxx.xx |
Calif avoid Capital Gain (by evie [TX]) Posted on: May 23, 2022 1:40 AM Message:
Don (PA)
Lived in the rental for the first 6 years then rented it for 16. How does that work?? --99.190.xxx.xx |
Calif avoid Capital Gain (by don [PA]) Posted on: May 24, 2022 6:16 PM Message:
Evie--My understanding is that if the property was your residence first, then the old rule that you get $250k/500k (single/married) exclusion from cap gains tax as long as it was your residence for 24 of the prior 60 months before selling. In other words, move back in for two years.
The IRS wanted to avoid a practice of investors making their properties their residence, one by one, every 2 years and selling them all off that way. --68.84.xxx.xx |
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