How Can I Lower Taxs On Spec Home Profits.
I’m a new spec home developer/builder in Los Angeles. I will completing my second home in May of this year. Hopefully it will sell for $2.5m with about 1m profit. How can I stop the Fed’s from taking a big chunk of my profit in taxes.??? Below are listed a few ideas, will any of them work?.
I refi’ed my house several times taking equity from it to live on during the past 2 years to tune of $400K, could I pay back these loans out of the $1m profit and not have to pay tax on the $400K of the $1m profit?
OR can I take the $1m profits invest in another development project and not have to pay tax?
Or can I put the $1m - in a trust to lower taxes? (if I put it in a trust I need to have access to the funds it to build other projects and have funds for living)
Or is there any way through a corp, investments or whatever to greatly reduce or eliminate taxes on the $1m profit????.
Any feed back would be appreciated, thanks.....
You should be asking your CPA these questions. These numbers are too big to trust to an anonymous web forum response.
Hi Jam!
That would be great. Thanks!