What Is Best Way To Sell W/out Incurring High Taxes
I own a two million dollar acreage with co-owner.
There are no liens or mortgages on the property.
We are both retired and wish to save on the tax burden, if possible.
Neither of us need an immediate cash settlement.
Can you provide us with alternative ways of receiving the proceeds that would benefit us in the long run?
What type of Contract could we offer a Buyer?
Can you link me to any site that would provide detailed information?
Thank you. FSmith
This is really a question your CPA should be answering for you. But both cjmazur and finniganps bring up some good options.
If you did an installment sale, one advantage is that title does not transfer until the terms of the contract have been fulfilled. Meaning, it doesn’t transfer until you have been paid in full.
A couple of common ways to do an installment sale are a Contract for Deed, or Land Contract, or an AITD (All Inclusive Trust Deed).
However, be careful on an installment sale, as it could potentially result in being taxable in the year the contract is executed, rather than over time as you collect the money. At least that’s my understanding.
Again, I would direct this question to your CPA.
Just my 2¢[ Edited by mcole on Date 06/01/2007 ]
There was a great technique that I was introduced to where you used an option and a offshore entity to create a adjustment to the basis. Alas, it was busted like many offshore tactics when the IRS got agressive last year.