How to avoid capital gains tax when selling under two years?

Asked by MVProperty, Mission Viejo, CA Sun Apr 28, 2013

We bought a condo at $269 in January of 2012. We are listing it for sale at $430 tomorrow. How do capital gains taxes work in our situation. We would be using 100% of the equity as a down payment on a new property.

Help the community by answering this question:

+ web reference
Web reference:

Answers

6
nahidworld2, Home Owner, Mission Viejo, CA
Wed Jun 5, 2013
Avoiding Capital Gains tax can be achieved in a number of ways. You can either shelter the entire investment in a tax free environment or you can create a capital loss that is equivalent to your gain; either way, our experts on how to avoid capital gains tax will ensure you find the perfect solution.
For More information, you can go here: http://www.thetaxexperts.co.uk/how-to-avoid-capital-gains-tax
0 votes
, ,
Mon Apr 29, 2013
Well they keep changing the rules to this but it sounds like a taxable event to me. If it were an investment property you could do a 1031 exchange.

If you could refinance under an assumable loan. and then lease with the option to buy to the buyers with them assuming the mortgage, once your time is up have them either assume your current mortgage or refinance depending where rates are. But yes everything you could do would be very convoluted to say the least.
0 votes
Ingrid Ski R…, Agent, Mission Viejo, CA
Sun Apr 28, 2013
You would be best to talk with your tax account who knows your finances and your situation..


Ingrid Ski Realtor
949-8740-0432
OCAreaHomes@gmail.com
0 votes
Ron Thomas, Agent, Fresno, CA
Sun Apr 28, 2013
I am pretty sure you are Okay:
You need to talk to your Tax expert, or, (and I stongly recommend this,) go in and talk to the IRS:
They do not bite!
They employ nice people, who are there to help.
And you can rely on the answer.
0 votes
Walter 'Skip'…, Agent, Brea, CA
Sun Apr 28, 2013
In my opinion, you will owes taxes on the net gain. Prior to 1998 you could defer the gain by purchasing a more expensive property within a certain time frame. I do not believe that option is available any longer. Please consult a tax professional.
Good luck,
0 votes
Laura Coffey, Agent, Santa Clarita, CA
Sun Apr 28, 2013
You need to contact your CPA in regards to taxes. Realtors are not to advise in this unless they are licensed appropriately.
0 votes
Search Advice
Search
Ask our community a question
Home Buying in Mission Viejo Zip Codes

Email me when…

Learn more