The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/but-one-strong-motivation-for-her-to-do-it-this-30744155.aspx

Subject:  Re: question ... Date:  6/21/2013  3:15 PM
Author:  TMFPMarti Number:  118726 of 121478

But one strong motivation for her to do it this way is that she received a payout when we did this. And we really need the cash.

But now I'm thinking about taxes. Should I just record it as sold --at this fractional price -- and recapture all previous depreciation; this will probably generate a pretty big tax loss. And then, assuming we buy it back in six months, do I start depreciating it all over again, and also record a new (and fractional) cost basis? That would generate a huge taxable profit when we sell it, as we plan to do.


The way the tense keeps changing I can't figure out whether this is something you're contemplating or have already done. Hopefully it's the former because I wouldn't touch this arrangement with a barge pole without legal and tax advice up front. It's potentially dangerous territory when you engage in a transaction that isn't really what it looks like on the surface.

Phil
Rule Your Retirement Home Fool
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us