The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: question ...||Date: 6/21/2013 3:15 PM|
|Author: TMFPMarti||Number: 118726 of 121335|
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.
Rule Your Retirement Home Fool
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|