I plan to buy a 2002 dwmh in a few weeks. How do I protect myself from taxes/capital gains.
I should be able to get property for 20000.00
Needed repairs 5000.00
Closing cost estimated 3000.00
Total 28000.00
Home should sell for around 65000.00 to 79000.00 how do I get cash out with out paying
All the taxes on it. Do I refi it and at what % of the value need some help!!
Thanks Joe ???
The only way to avoid/defer taxes in you case is to hold/rent the property for a year and then do a 1031 like kind exchange. Make sure you hold it for at least a year and one day. If you keep it for a year and then decide to sell rather than do a like kind exchange you will pay less tax on a long term capital gain.
If you decide to sell now and IF this is your primary business you MAY end up paying taxes on ordinary gain even though you have a capital asset because under section 1221 you property is inventoriable and is held primarily for sale and thus excluded from the term “capital asset”. Check Section 1221 & 1231 of IRC.