How do I avoid Captial Gains Tax On propert I Own in Brooksville, Fl?

Question

I had to quick claim the deed to my house into my father's name im Jan of 2006. When my home sold I cleared 64,000.00. To avoid a huge tax penalty, my step-mother (who is my agent) did a property trade into a parcel. Now I want to sell it, but I dont want to lose tons of money to taxes!

Answer 1

Your mother was right. What she did was a 1031 exchange. Perfectly legal. So please don't worry. Your problem now is what to do with the money you will make from selling... You will need to put the proceeds from the sale in to a larger real estate investment. (remember the word investment) in order to avoid capital gains. Check with your stepmother and see what you can do. Good luck....

Answer 2

First....it's a QUIT claim, not quick.

Second, since your mother helped you break the law, I don;t know how to advise you. You CANNOT trade your house for raw land to avoid taxes. Geez, you got some really bad advice along the way.

You technically owe taxes back from the original sale. I advise you seek competent help, fast. And fire your mother as your real estate agent and tax advisor!!

Enrolled Agent

Answer 3

you will could pay a capital constructive components tax on the income (sale value much less purchase value and much less value of capital advancements if any) except you exchange it for like form sources under IRS SEC1031. do no longer even think of of doing a 1031 replace without professional suggestion.

Answer 4

The only way to avoid the taxes is to exchange it for another property.

If you receive cash.....you pay.