hear is my problem..... (accountant, taxable, mortgage, buying)

[westchester]

i own a piece of property w my brother....he was murdered 4 months ago, and his will says to sell all his property and divide it between hiss wife and 2 kids....we paid 1 mil 9 years ago, it will now sell for 2.2. we owe 650k. we own it 50/50....what can i do to my profit as not to have to lose to much in capital gains....i want to by a ski house with my profit but can i 1031 just my half...also can capital improvements be deduc ???? any help would be appreciated...thanks....Pete twin to Pat

[Rakin]

Sounds like you need a very good tax accountant who deals with estate planning. It would be money well spent to not pay any more in taxes then necessary.

[westchester]

i will get a good tax attorney...i just want to get as much info before i find the right attorney...just looking for as much info first..to make sure i have found the right attorney.thanks

[westchester]

before i sell can i take out a 2nd mortgage for 400k....will this help me ...??????????

[golfgod]

before i sell can i take out a 2nd mortgage for 400k....will this help me .

How much you owe, nor or later has NOTHING TO DO WITH THE VALUE. So, NO, taking out a mortgage will not help you.

First, stop worrying about taxes. Long term capital gains is 15% now, lowest it's ever been I think.

The gain is 1.1 million. Let's assume you'll have selling costs of 10% or so, figure $200K. That leaves $2MM net, for a profit of $900K, your end of that is $450K. The tax on that is $62,500, plus whatever the state takes.

I'm not sure what kind of ski place you can get for that kind of money, IMO they are a RIP OFF, and I ski a lot. You can expect to pay $600/month or more for condo fees in any upscale ski area.

Still, get an accountant, not an attorney.

Oh, you CAN deduct capital improvements from your proceeds to lower your tax bill.

Congratulations on your gain but sorry for the loss of your brother.

golfgod

[westchester]

thanks....golfgod

[Ultrarunner]

What about buying her out over time?

That way your original ownership is unchanged.

No reason why you can't 1031 your half if you plan correctly... it can make putting the deal together much more complicated within the timeline.

Your CPA will have the hard numbers as too what your taxable gain would be upon sale or how much you would need to invest should you 1031...

I still like the idea of buying your sister-in-law out if it works for you... can't beat seller financing, she should also see a decent return and depending on the total estate, she may be able to defer some of the gain in necessary... also, it might be a good thing to set up an income stream for your brother's family.