Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: penguin43 Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121095  
Subject: Capital Gains Tax Liabilities-HELP!!!! Date: 4/8/2002 9:40 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
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

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Post of the Day:
Macro Economics

The Future, or What's Left of It
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement