I bought a house 3 months ago and would now like to sell it... Is it possible to avoid paying capital gain taxes on a property for less than 250k ?
On a second property Is it possible to set up a trust fund sto benefit my relations & so avoid paying capital gains tax
Capital gains tax is tax on profits earned from the sale of capital assets like property. Capital gains are the profit that is made on the sale of an asset that is bought at a lower price. Usually capital gains are realized from sale of property, stocks, bonds and valuable metals. Capital gains taxes are taxed lesser than regular income. Some of the capital gains are tax-exempted too.
In order to avoid paying capital gains taxes, you are allowed to sell one property in lieu of another. There is a capital gains tax levied on property on any profit that is made through the sale. You have to sell a 'similar investment property' for another if you want to avoid paying capital gains tax. For instance, if you are selling a house (real estate property), you need to replace the sold property with another house.
We want to sell a residential property that we lived in 2 out of last 5 years. In order to avoid capital gains tax using this method, what date is used to determine your primary residence?? We did not immediately move to new property, and we are trying to figure out what date the old residence must be sold by.
You can take a deduction of 250,000 - 500,000 on a house lived in, by you, for two or more years. speak with a CPA.
Selling home of elderly parent who has moved out. If we sell and have her purchase another home of equal value to be held in her estate, is there tax obligation on capital gain?
Visit the IRS office or their website and see if there are exemptions applicable for you.