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.
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