avoiding capital gains on sale
I'm new and I woudl like the best way to purchase a property while allowing the sell to avaid as much possible gain as possible and/or slow down the payment of the gain. He is also very old, are there any inticements to offer him in regards to avoiding all kinds of taxes. :-S
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mpidayton,
Before attempting to give you an answer, could you provide a little more invormation?
What is the seller offering -- Personal residence, farmland, investment property, commercial property ?
How long has he/she owned it?
If it is a primary residence, "the U.S. tax rules that apply when a homeowner sells his primary
residence provide that if the homeowner has physically occupied the
home 2 out of 5 years immediately preceding the date of sale, the
homeowner will be able to exclude some financial gains from U.S.
taxes based on marital status.
Single Homeowner $250,000
Married Homeowners $500,000"
...from pdr.com, strangely enough.
Also, checkout: http://www.irs.gov/pub/irs-pdf/p523.pdf