Val Evans

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Rainmaker
4,212,846
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Not avoid but possibly delay.  How about a 1031 exchange?

Nov 12, 2015 02:48 AM
Rainmaker
4,433,809
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

He should talk to his accountant.

Nov 12, 2015 04:30 AM
Rainmaker
913,580
David Popoff
DMK Real Estate - Darien, CT
Realtor®,SRS, Green ~ Fairfield County, Ct

Yup talk to your CPA about the 1031 exchange.

Nov 12, 2015 04:00 AM
Rainmaker
3,070,584
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Avoid making a gain? 

Nov 12, 2015 11:27 PM
Rainmaker
1,157,535
FN LN
Toronto, ON

There may be tax planning strategies that may be available to minimize tax on capital gains.  Your friend should discuss with his professional tax advisor(s).  He should not rely on comments provided in a Q&A forum.  There is insufficient information in your question to even provide any answer.

Nov 12, 2015 08:25 PM
Rainmaker
1,771,442
Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

This is a question only the accountant can answer, not a good friend. I have had people do 1031 exchanges as Michael Jacobs mentions but the person needs professional advice of a CPA.

Nov 12, 2015 09:27 AM
Rainmaker
5,764,585
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Val.

1031Exchange as my friend Michael Jacobs stated.  It is often used in commercial real estate.  Also he should consult his CPA and or financial advisor. A

Nov 12, 2015 05:51 AM
Rainmaker
1,429,516
Raymond E. Camp
Ontario, NY
Licensed Real Estate Salesperson Greater Rochester

Between Michael Jacobs and Gita Bantwal you have the answers.

Nov 12, 2015 05:32 AM
Rainmaker
3,986,000
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

1031 exchange

Nov 12, 2015 04:06 AM
Rainmaker
2,669,173
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

IRS bloodhounds will come a sniffing when the word AVOID is used...woe

Nov 12, 2015 03:53 AM
Rainmaker
846,375
Marco Giancola
Beachfront Realty - Miami Beach, FL
Realtor (305)608-1922, Miami Beach Florida

Michael Jacobs delivered it.

Nov 12, 2015 03:32 AM
Rainmaker
4,799,651
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Michael Jacobs has the best possible answer for your friend.

Nov 12, 2015 03:17 AM
Ambassador
5,613,349
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Talk to a CPA who is skilled with 1031 exchanges.

Feb 05, 2019 09:02 PM
Rainmaker
1,465,977
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Val Evans A 1031 Exchange will defer the taxes. This is a 'like kind' exchange so it shouldn't be a problem.

Nov 12, 2015 10:23 PM
Rainmaker
2,007,235
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

First - have your client talk to his accountant about tax free exchanges. You really don't want to be getting tax advice from ActiveRain - no matter how smart we are! 

Nov 12, 2015 09:13 PM
Rainmaker
2,759,637
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

 Good Friday morning Val. I was thinking the same thing that Michael was.

Nov 12, 2015 05:28 PM
Rainmaker
1,541,948
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

I refer my clients to my vendor who specifically advise them on this issue. 

Nov 12, 2015 04:41 PM
Rainmaker
924,040
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Pose that Q to a qualified 1031 intermediary, and CPA/tax accountant to see if the transaction qualifies, and if it makes sense to do BEFORE selling or buying. Old Republic down your way has done many of ours.

Nov 12, 2015 12:10 PM
Ambassador
3,060,003
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Mind you giving tax advise to clients instead of suggesting a tax attorney or CPA can land an agent in deep poo poo 

Nov 12, 2015 12:03 PM
Rainmaker
1,413,494
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

1031 exchange would be my first thought, but always consult a tax accountant or lawyer.  Don't know if you can go from multiple residential rentals to a single commercial property though.  Definitely need to check with a tax lawyer.

Nov 12, 2015 11:08 AM
Rainmaker
2,224,167
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Your friend should probably consult with their accountant. That's what I would recommend.

Nov 12, 2015 10:20 AM
Ambassador
1,569,453
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

Just a 1031 exchange, unless he wants to convert to his primary residence and sell in 2 years. 

Nov 12, 2015 09:01 AM
Rainmaker
586,107
Hella M. Rothwell, Broker/Realtor®
Carmel by the Sea, CA
Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea

Sorry, can't help you. I am not a lawyer nor a tax attorney.

Nov 12, 2015 07:18 AM
Rainmaker
634,332
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

A 1031 will delay the pain in the pocketbook.

Nov 12, 2015 06:59 AM
Rainmaker
2,809,781
Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

I think one way is to make capital improvements to the home as that will offset part of the gains...and allow to sell at higher price to help pay for some of the capital gains.  I think the $250,000/$500,000 only applies to your primary residence.  I also think that expenses when selling a house are tax deductions, too.

 

I think another option might be to sell some stocks at a loss.

 

But, the best thing would be to talk to an accountant.

Nov 12, 2015 05:41 AM
Rainmaker
292,585
Jack Lewitz
Exit Strategy Realty - Evanston, IL

If it's personal residence then capital gains are avoidable and if it's investment then 1030 exchange or sell it for less than what you paid 

Nov 12, 2015 04:15 AM
Rainmaker
413,193
Cindy Davis
SD Home Source Realty - San Diego, CA

You need to ask an accountant that question. We are merely Realtors.

Nov 12, 2015 03:52 AM