Posted by John K Haslach, CPA, MST on June 03, 2004 at 04:23:27:
There may be ways to accomplish at least part of your goals, but they are not simple. You should work with a competent advisor.
Capital Gains Question - Posted by Blake Starkey
Posted by Blake Starkey on June 02, 2004 at 17:31:47:
We have just identified our first property. After talking to numerous sources, have determined that it is worth pursuing, and we are probably about to buy it conventionally - $59,000 @ 10% down with an ARM. I know conventional purchases goes against the advice of a lot of people on this board, but that is the way we are going to pursue this first property.
One of the main reasons we are getting into this is to offset college costs for my daughter (who is now 9). I have heard that when it is time to sell, you can roll your profits into other properties and avoid capital gains tax at that time. But I wanted to know if anyone knew if you could take ALL of your profits at the time (if you’ve kept excellent records) and put them towards college education, avoiding capital gains. I have heard there is a way to do this if you set it up this way initially. Anyone else familiar with this?
Even if not, it seems real estate (if you can buy it right) is an excellent way to set money aside for college.