Avoiding Capital Gains In RE Sale.
I purchased a new home and 2 building lots from a builder a month ago. I have a contract on the house and one of the building lots. What is the best way to avoid capital gains taxes and what % are they? ANy help would be appreciated!! I am financing several investement properties now. Is their a way to put some of th emoney towards them to avoid?
Thanks
Not all 1031 exchangers are created equal! Talk to SEVERAL active INVESTMENT FOCUSED REALTORS and find out who the best ones are in your area.
Here is an article on this website that will help address the holding period guidelines:
http://www.thecreativeinvestor.com/commercial/modules.php?name=Articles&file=article&articleid=572.
[addsig]
I was just repeating what our instructor said in the continuing education class- that long term capital gains will drop to between 0% and 15%, depending on your normal tax bracket. So while I am not saying you will pay no capital gains tax in 2008, I am saying, third hand but from a reliable source, that your long term capital gains should be 15% maximum.
Chris
Chris,
Seems unlikely to me that Cap gains rates are going down. In fact the best advisers I have suggest the opposite.
Mark
dropping cap gain rates to 0% from 15% would be huge. it would be all over CNBC and most nightly news casts, just like when they stopped double taxation of corporate dividends.
They stopped double taxation of Corporate dividends???
[addsig]
I am a dealer, I pay no capital gains through my corporations. It is all inventory in and out and I pay tax on net profit after expenses.. Have for years.
Cheers!
[addsig]
The lowering of Cap gains taxes has been in the law for 3 or 4 years. But the rate is based on your taxable income in that tax year,so if you have a $100,000 profit you can forget about the lower tax brackets etc.
Quote:
On 2007-03-01 10:27, Stockpro99 wrote:
I am a dealer, I pay no capital gains through my corporations. It is all inventory in and out and I pay tax on net profit after expenses.. Have for years.
Cheers!
The rate of tax at the corp. level is equal to or higher then the capital gains tax rate at the individual level.[ Edited by finniganps on Date 04/11/2007 ]
I am a seasoned investor , I buy and trade real estate by way of limited liablity company , no capital gains taxes it is a business and pay on Net proceeds .
Quote:
On 2007-03-01 10:27, Stockpro99 wrote:
I am a dealer, I pay no capital gains through my corporations. It is all inventory in and out and I pay tax on net profit after expenses.. Have for years.
Cheers!
[quote]
On 2007-02-26 16:32, rmdane2000 wrote:
"... just like when they stopped double taxation of corporate dividends."
Could you post the effective date of this legislation? Thank you.
[quote]
On 2007-04-11 00:19, Taxivestor wrote:
Quote:
On 2007-02-26 16:32, rmdane2000 wrote:
"... just like when they stopped double taxation of corporate dividends."
Could you post the effective date of this legislation? Thank you.
Just to clarify. The corporation pays taxes, sends the dividend to the shareholder and to the extent the dividend was already taxed (the C Corp shares this info. with the shareholder) , you do not pay taxes again at the shareholder level. Typically if you own mutual funds they will disclose how much they have already paid taxes on in the year end statements. This was enacted a few years ago.
I have heard similar good things about low Capitals Gains in 2008 from my accountant.
That makes you wonder though....
1) If the last 5 years has been the largest run up of Real Estate appreciation in recent years, in some areas as much as 25% of purchases for investment.
2) Republicans loosing control of the government, possible Democrats in the white house
3) Politicians spooked about foreclosures and sub prime lenders.. Tightening lending, capital gains and other legislation etc..
4) China getting tired of buying our Treasuries
What does that spell for loads of inventory on the MLS across the country. Everybody trying to dump at once.
Sorry to get off the subject a bit here, but is this at all worrying to anybody? Anybody have any forecasts or oppinions of 5-10 years to come?
I m new to this and flipping. How can I find reliable info on avoiding capital gains in Il. I was told because I was usig funds from a self directed IRA and the profits went back into my IRA to reinvest there would be no capital gains. Does anybody have any knowledge on this? Thanks [ Edited by ypochris on Date 04/13/2007 ]