HOW TO AVOID CAPITAL GAINS?
I purchased a 2 family house in Brooklyn, NY in June 2004 for $349,000. I am ready to sell. I have a buyer who wants to buy it for $525,000. I was told that since I did not own the property for 24 months that I would pay capital gains taxes of at least $70,000 on the $175000 profit. Is there any way around this? All of the investors I see in Brooklyn, NY I know are not paying these ridiculous taxes on their profit.
I am desperate to sell.
P.S. How does one calculate the capital gains tax? Somone above referred to a 15% rate. How was that determined?
Congress