Capital Gains - Posted by Mark

Real Estate Investing
1

Posted by Tim on December 13, 2004 at 21:27:35:

Care to elaborate?

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Capital Gains - Posted by Mark

Posted by Mark on December 13, 2004 at 17:25:14:

Is it true that the only way to reduce capital gains is with capital losses?

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Re: Capital Gains - Posted by dave

Posted by dave on December 14, 2004 at 17:41:42:

buy and sell using a corp.

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Re: Capital Gains - Posted by Dave T

Posted by Dave T on December 13, 2004 at 23:24:45:

Besides offsetting capital gains with capital losses, here are seven more legal ways, that come to mind, to eliminate capital gains (taxes).

  1. You can gift your property to anyone you choose and there will not be a capital gain on the transfer.

  2. You can hold your property – never sell – and never incur a capital gain.

  3. You can die and leave your heirs your real estate. They will get a stepped up basis and not incur a capital gain.

  4. You can sell at a loss and avoid a capital gain.

  5. You can donate your appreciated property to an approved charity and eliminate the capital gain. Same effect is achieved if property is transferred to a charitable gift trust or a charitable remainder trust.

  6. Use suspended passive losses to offset capital gains on the sale of your investment rental property. With no net profit on the sale, no capital gains.

  7. Quickly flip property as dealer disposition – no capital gain, just ordinary income.

Note: A properly structured exchange does not eliminate capital gains, only defers them (perhaps indefinitely) to a later date. Since the capital gain is not “eliminated”, I did not include this strategy in my list.

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Re: Capital Gains - Posted by Steve

Posted by Steve on December 13, 2004 at 21:05:26:

One way to “eliminate” or at least post pone capital gains on the sale of real estate is to exchange the money or re-invest the money into another property ie a better property. By investing the money you receive into the other property you avoid paying the gain from the original sale. Totally legal. You pay nothing and get a better property as a result. There are some time line restriction when doing an exchange so just be careful.

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Re: Capital Gains - Posted by PBoone

Posted by PBoone on December 13, 2004 at 18:12:12:

Absolutely NOT!