Tax Strategies
Internal Revenue Code, Section 1031, states that neither gain nor loss is recognized when the proceeds from the sale of assets such as real estate is reinvested in “like-kind” assets. This provides an opportunity to defer payment of capital gains tax, giving the owner access to more interest free money and the means to afford more expensive property. For further understanding, the link www.irs.gov can help you with their simple and informative explanations on the complex aspects of 1031 Exchange.
[ Edited by wiliam on Date 11/06/2006 ]
[ Edited by JohnLocke on Date 11/06/2006 ]
Refinancing will not affect your tax situation with the execption of the interest payments
In my opinion, the market is not going to get any better in the next 12 months.
[addsig]
Quote:
On 2006-11-08 19:14, bargain76 wrote:
In my opinion, the market is not going to get any better in the next 12 months.
I agree - and moving a lot is a lot harder then a house, even in a good market. Sell now, while you can.
Answers -
-Property Taxes and Insurance should be reported as a footnote to the new owner on form 1098; As for your reporting, I do not think you even have to show it on your tax return. If you lost money on the deal, simply report it on 4952 as additional sale expeneses and take the loss (line 5) or simply have the new owner reimburse you (this would be easier from a reporting standpoint and you would not lose any money)
[ Edited by ctsee11 on Date 11/06/2006 ]