2007-01-25 05:24:58 · 10 answers · asked by Guniek 2 in Business & Finance ➔ Taxes ➔ United States
No, no way. A tax pro might be able to help you keep the bite as low as possible, but there's no way around the tax code on that one.
OK, I'll qualify that a bit. If you move into the rental unit as your primary residence for at least 2 of the 5 years prior to sale you might be able to exclude the gain. Any depreciation deduction that you took while you were renting it out must be used to lower your basis which will increase your gain. If the gain then exceeds $250,000 ($500,000 for married filing jointly) the excess will be taxed at the appropriate capital gains rate.
Another option would be a like-kind exchange but that only defers the gain, it delays the tax bite but does not avoid it.
2007-01-25 05:35:57 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
2
2016-07-19 15:55:08 · answer #2 · answered by Sheri 3 · 0⤊ 0⤋
You may be able to defer the tax by exchanging the real estate for another piece of real estate which has a business use. This is called a "1031 exchange".
Or you could bequeath it to your heirs, who will inherit the property on a stepped-up basis and not pay tax on the capital gain that you had.
2007-01-25 05:36:03 · answer #3 · answered by ninasgramma 7 · 0⤊ 0⤋
If you have sold it already then there is really no legal way to avoid the tax. If you have not sold it yet than contact your attorney or your accountant and ask about a 1031 Exchange (Like-Kind Exchange). There are rules regarding it but you can defer the tax on the gain until you sell the new property that you exchanged the old one for.
2007-01-25 05:31:12 · answer #4 · answered by emeraldsky21 2 · 1⤊ 0⤋
The only way you can do it under current tax laws is to do a like kind exchange. This is where you, instead of selling it for cash, you sell it to someone who "pays" you in like-kind property (house for house). You will then be rolling over your basis in the old property to the new property and no gain will be recognized currently.
2007-01-25 05:31:40 · answer #5 · answered by jseah114 6 · 2⤊ 0⤋
Another way is to lose money on the sale. Then there are no capital gains. Ha! Sorry...I just had to.
2007-01-25 05:43:01 · answer #6 · answered by mugwumper 2 · 2⤊ 0⤋
You can always donate the gain to a charity.
2007-01-25 05:32:56 · answer #7 · answered by loryntoo 7 · 0⤊ 0⤋
you need to go and talk to a local CPA and see what they say, you probably have a time period to roll that money over into another property if you want to buy something else, but they can explain all of that to you.
2007-01-25 05:30:09 · answer #8 · answered by besthusbandever 4 · 0⤊ 1⤋
Rent To Own Home - http://RentToOwnHome.uzaev.com/?EEzM
2016-07-13 04:15:46 · answer #9 · answered by Tisha 3 · 0⤊ 0⤋
placing the proceeds into a trust.
2007-01-25 05:32:49 · answer #10 · answered by Jack Chedeville 6 · 0⤊ 2⤋