Convert appreciated Stocks to real estate?

Question

I have about $100k worth of appreciated stocks (long term) and I am interested in buying some real estate property for renting it or owner occupied rental property (3~6 unit building). Is there a way I can avoid the long term tax on the sale of the stocks. Thanks in advance.
Z

Answer 1

No, once you realize the gain you have to pay the tax-man, unless you have offsetting losses. Moving into another asset class will not allow you to defer the gains.

Answer 2

You can only avoid the capital gains tax on an asset if you make an "in-kind" transition. So if you sell one house to buy another, you do not have to pay the gains tax as long as you roll over the money. This would not apply if you sold securities to buy real estate.

Answer 3

professional...if your place is nicely worth below what you owe you've offered the domicile the place as in case you had to pay what you owe you've a extra complicated time. Con...you will the two owe the economic employer the soundness of what you owe on the loan or the economic employer will situation you a 1099 affirming that the quantity they forgave on the loan is earnings. remember that your loan business enterprise is had to sign off on a quick sale so it is not recommended to objective a quick sale until eventually you get it authorized consisting of your economic employer. I additionally propose you record the valuables for only a touch extra advantageous than what your economic employer approves the fast sale for (ie in the event that they approve you merchandising it for $59k record it for $69k so which you have some wiggle room in negotiating...shoppers assume they'd dicker down good now because of the fact there are maximum of extra residences than shoppers).

Answer 4

Don't sell the stocks. Use them as security for a loan to finance acquisitions........hopefully interest on loans in your tax area is deductible.
For the latter, consult a local tax accountant.