Capital Gains Tax
How do you avoid the capital gains tax associated with quick turn real-estate? Is a capital gains tax applicable to all short sales and is there any way around it?
How do you avoid the capital gains tax associated with quick turn real-estate? Is a capital gains tax applicable to all short sales and is there any way around it?
hi, i just got started about 6 months ago and i am not looking forward to pay these taxes. As far as i know there is no way around it if you short it and sell before two years. you should try to assign contracts for profit as much as possible to avoid capital gains. for anybody out there who has paid capital gains i was curious to know what i am going to be paying out this year. i made a total profit of 20k on a prop. that means i will have to pay out 4k just to capital gains right? as far as i know it is "20%". thanks, Ryan
Sorry, that may have been a bit vague. Please allow me to clarify. This is an example of the ideal scenario.
1) Find the distressed home owner.
2) Have the owner transfer property to a family trust
(for estate planning purposes ) with me as the
trustee.
3) negotiate short sell and find a buyer.
4) simultaneosly close using the buyer's money.
5) title company writes me a check for the remainder
of the proceeds.
I have been told in the past by other investors that
this type of closing, may in fact, keep me off of the title. Is this true?
Also (the most important question) Am I, as an individual investor, responsible for capital gains in this transaction? Or is this considered dealer status and just an ordinary taxable event?
Does this still hold to be true if a JP or LLC were named as trustee or had POA?
I am basically looking for the most advantageous way of structuring this type of deal... (all things considered) .
Thanks for all your helpful insight! - Matt