What are the possible ways to avoid capital gain taxes ......its over 200k in capital gain for real estate?

Question

the real estate was owned for over three years and has been a investment property....

Answer 1

Reinvest it back into realestate...

Answer 2

Only thing I can think of is reinvesting the funds back into real estate, for investment properties. Also, get a tax lawyer to set up appropriate tax structures for you and your situation e.g a hybrid trust or a holding company. This way you will minimize your tax a lot more than investing under your name. When you invest under your name you get taxed the highest rate; you get taxed as an employee earning income. Definately hire a tax lawyer, esp if you are going to be consisitently making such capital gains and huge returns on yor investments.

Answer 3

Under those circumstances, there is NO way to avoid the CG tax bite. Sorry.

Contrary what other reponders said, reinvesting the gain will NOT let you off the hook for the tax. And it's too late for a 1031 exchange.

Answer 4

Before you do anything else, check out the IRS section 1031 regulation. It allows you to defer cap gains by exchanging property with another real estate investor. Look around locally for a qualified intermediary who specializes in these 1031 deals -- normally associated with a real estate office.

And of course if you delay cap gains long enough, it's almost as good as avoiding it altogether!

http://en.wikipedia.org/wiki/1031_form

Answer 5

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