Hey
Sold to 2 - 3 units this year.
My tax rate is about 11%.
Taxman says I ll owe about 60,000.
What would you do to reduce this amount going to uncle Sam?
Thanks
Brian
p.s - would a TIC effectively work here?
don’t sell any more properties.
zero income = zero taxes.
glad I could help.
Man! That’s why you CPAs get the big bucks! I wanna be just like you if I grow up, Mark!
bellboy – in the future, you might want to confer with a tax professional BEFORE you sell!
There are a bunch of ways you could have softened this blow…
Keith
OR
you can write me a check for all of your profits, and call it a deductible “consulting fee”. this reduces your income to zero, eliminating your taxes.
I’ll gladly pay $60,000 in taxes and keep the other $540,000.
yep, I really like that idea.
That’s Mark Wagner
PO box 33…
I think bellyboy is pulling your leg.
Who doesn’t know exactly how many properties were “sold” during the year? If he already has a taxman, then why is he here asking his question way too late in the game to do anything about it? Where was the taxman he is supposed to have?
Thanks, Mark, for seeing through this one and having some fun with it.
ah- just figured you guys may know some in and outs.
i didnt do the 1031 thing cuz didnt really feel like buying into such an inflated market. either loose when i buy or loose when i sell (taxes)
it was time too sell with those types of returns. not going to do that buy and hold thing like i did in the late 90 's with the stock market.
anyone else have anything to add worth reading
thanks
Like most other folks, except perhaps for Sean Penn, I am disgusted that we have to pay so much in taxes to an ever expanding government that just tosses it down a black hole and then demands more. We could eliminate about 95% of government ‘services’ (and I use that term very loosely) and we’d get along just fine. In fact better, if government would just get out of the way.
That being said, the previous posters are correct. Eliminating, reducing or deferring taxes is a preplanning event not a post sale event. Your options are to exchange, find some way to expense as much if it out as you can (i.e. Mark’s consulting fee), or make some capital expenditure which will adjust your basis.
Personally, I would be thrilled to pay that $60k right now as that would mean I have $545k to sit on for a few months, start buying up the massive foreclosures that are about to flood the market and make back way more than the $60k you paid Uncle Sam.
Good luck.
Cate