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Financial Planning / Tax Strategies
|Subject: S.O.S. MOTLEY FOOL STAFF||Date: 12/26/2004 10:15 AM|
|Author: CUBE2U2||Number: 74925 of 121108|
I will do my best to describe this in as few a words as possible.
Wife and I - inherited 80 acres, built house on 2 acres for cost of about $280,000
80 acres was given to us over a 4 year period as a gift equalling $160,000. (Tax exempted because $20,000 given to spouse and $20,000 given to me each year - $40,000 per year for 4 years)
Question: How to dodge taxes on gains if property sold.
New appraised property value: $10,000 / acre -
but given to us at a value of $2,000 / acre
Difference of $8,000 per acre if sold - (We would have to pay taxes on this $8,000 right?)
How can we dodge paying these taxes?
Could house be used as a leverage? In other words, if we have lived in the house for 2 years could we sell house along with so many extra acres of land (that could be further subdivided by purchaser) but included in house sell to allow upto $500,000 gain for spouse and me but pay no capital gains? (ps: We don't want to sell our house. Is there a way to do it on paper somehow to dodge taxes, and then get it back in a completely legal manner?
Or is there another way to sell the property without selling our house to avoid capital gains?
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