HOW TO NOT PAY ANY TAXES ON CAPITAL GAINS
Based on a new tax law, you can avoid capital gains if you follow these strategies. Example one: If you have a rental property and you sell it for $3 million and your cost is $1.5 million, your profit will be $1.5 million. Your taxes on the profit will be between $500,000 and $700,000. You and your spouse or significant other can avoid paying those taxes by trading for three single-family rental properties—Property A, Property B, and Property C. You then rent them out. If you try to rent Property A and you can’t, live in it for two years and sell it, the $500,000 profit based on the new tax law, is excluded. Then you move to Property B and live in it two years. When you sell it, you do not pay any taxes on the $500,000. Then, live in Property C for two years. Sell it and you don’t have to pay any taxes on the $500,000 either.
ABOUT THE AUTHOR: Eugene E. Vollucci, is considered to be one of the foremost authorities on real estate taxation and real estate investing and has authored books in these fields published by John Wiley & Sons of New York. He is the Director of the Center for Real Estate Studies, a real estate research organization. To learn more about the Center for Real Estate Studies, please visit our web site at http://www.calstatecompanies.com