taxes - Posted by Realest Man

Posted by Rolfe Kurtyka on July 18, 2001 at 17:10:56:

If you hold this property less than 12 months, the gain will be taxed as ordinary income, not the cap gains rate.

The only way I know of to avoid taxation is to hold the property. Rental income is passive income, subject to different IRS rules. If you rent the property, there’s a good chance you’d actually have a tax shelter vs. a tax liability. After two years, you could use a tax defferred exchange to move into another property.

Otherwise, taxes due on gain are just part of the game.

Good luck, and good work! Rolfe

taxes - Posted by Realest Man

Posted by Realest Man on July 18, 2001 at 15:56:56:


I recently bought a foreclosure whee I stand to make about a 35/40K profit if I sell. However, selling will involve a pretty stiff tax bill. Does anyone have any ideas/experiences on minimizing capital gains taxes on a deal like this?

Thanks in advance for any thoughts out there,

Realest Man