Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
hey, I recently sold an asset and now have around 7,500 I gotta give to the IRS on April. however, there is some real estate i want to buy this month and was wondering if there's some kind of way I can avoid the taxes by buying real estate.
Any possibilities out there?
The asset was not real estate...so I can't do the 1031 exchange.
Right, I wasn't referring to raw land. You can claim depreciation on property regardless of whether it is actually appreciating, but doing so lowers your basis on the property, so that when you sell you 'recapture' the depreciation which will be counted as income. You can mitigate this by doing a 1031 exchange instead of selling, but at some point taxes will likely be due. The OP might also be able to buy property and write off the interest, which would reduce the taxes due. There are some options out there, but a good accountant or tax lawyer would be the best source of advice here.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,957 posts, read 21,990,236 times
Reputation: 6464
Quote:
Originally Posted by bigtrees
You can't depreciate land. Not sure about housing, but I generally think that's hard to depreciate since real estate traditionally goes up.
Actually the building has what is called a useful life. Usually it is about 40 years. In the simplest example say you buy a rental property for $50K and the land is valued at $10K, you would be able to claim $1K per year as depreciation.
Sell some stock. Odds are you would have a loss that could at least partially offset your capital gains.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
