How to minimize capital gains taxes

Can anyone provide some insight on how capital gains taxes work on an inherited house that is sold? House bought in 1960 for approx $20K. Ownership transferred to me approx 15 years ago. Mom passed away approx 1.5 years ago. Sibling and I no longer want to keep. Value approx $3M now.

jafeola

in General Discussion 7 years and 7 months ago

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Augustiner | 7 years and 7 months ago

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Do a 1031 exchange – call a knowledgeable tax person to see if you can defer taxes on your part of the ownership. Funds from the sale have to be held by an authorized intermediary and there is a certain timeline (indetify replacement property within 45 days, close within 180 days, puchase should be at as much as the abandoned property sale price)

daveinbedstuy | 7 years and 7 months ago

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You need an accountant, not a financial adviser that may not know all the intricacies of tax law.

jafeola | 7 years and 7 months ago

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anyone know a financial advisor who might have a specialty in this matter?

dougb | 7 years and 7 months ago

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Does creating an LLC and transferring ownership of the property to the LLC before selling help? I don’t know if your LLC could acquire the property from you at a your cost basis – and then when the LLC sells you’d be able to decide how to reinvest the gains, as well as when you’d like them distributed – rather than being forced to take the gains as income in the year sold. Very curious to learn what is most tax efficient in these cases…

daveinbedstuy | 7 years and 7 months ago

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Was it owned in Joint Tenancy with your mother? If so, when she died, the cost basis was boosted to what it would be approx 1.5 years ago.” But it’s really a question for an accountant and seems more complicated than that!