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Financial Planning / Tax Strategies
|Subject: Capital Gains Tax Liabilities-HELP!!!!||Date: 4/8/2002 9:40 PM|
|Author: penguin43||Number: 60115 of 121114|
Hi! I would appreciate any input on a situation that I got stuck with. My accountant found that my ex rolled over $78,000 cap. gains from one home that was sold in 1986 into the rental townhouse in southern MD that I just got as part of a divorce settlement. My lawyer said, "oh, well" and refused to have my ex pay half of the $30,000 tax bill before our final court date.
Now I understand that I may have a few options to possibly make the tax "ouch" hurt less. The townhouse is worth $150,000 with an $88,000 mortgage. The equity would be great if I didn't owe the $30,000!
1. If I sell now I would lose most of the equity due to the $30,000 already owed and due to the current cap. gains that I would also owe on the property.
2. If I live in it for 2 years, then my cap. gains is reduced.
3. If I keep it until I am 55 (8 yrs. from now), I can take advantage of not having to pay capital gains...correct? Would I be able to get out of the old $30,000 cap. gains debt also?
4. I own a piece of retirement property in FL that will be paid off in 2006. Can I roll the old $30,000 liability and whatever the new cap. gains would be, into the loan that I will then get to build a house?
What would you do to ease the tax liabilities if you were in this situation??? I have been qualified to refinance it and then go live in it or I have to have it sold by 12-02. Thanks so much! Pam
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