can you sell a primary residence for more than the deductible limit, but make arrangements to have it paid overtime to spread out capital gains tax?

Not suggesting anything fraudulent or illegal. I’m trying to figure out if there’s a legal way to do this. Let’s say you have 500,000 equity in your home after cost of selling. You sell it for $250,000 plus the cost of the mortgage and arrange to have an additional $250,000 paid as, let’s say, $40,000 per year?

Perhaps it is a matter of when the gains are realized so there’s no way to do that. What if you were selling to a relative for example where you could work something unusual and you sold half the house for $250k Plus the cost of the existing mortgage. Let’s say the existing mortgage equaled your basis just to keep it simple. And then you took your owner occupied deduction, and then the next year you sold half of your ownership for another $40,000, and the next year did that again until the agreed to purchase price amount was met. Would this avoid capital gains? Or reduce them?

Let’s assume that there would be some savings in the following years because for example you showed no income. My main question is about spreading out the gains

submitted by /u/clce
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Not suggesting anything fraudulent or illegal. I’m trying to figure out if there’s a legal way to do this. Let’s say you have 500,000 equity in your home after cost of selling. You sell it for $250,000 plus the cost of the mortgage and arrange to have an additional $250,000 paid as, let’s say, $40,000 per year? Perhaps it is a matter of when the gains are realized so there’s no way to do that. What if you were selling to a relative for example where you could work something unusual and you sold half the house for $250k Plus the cost of the existing mortgage. Let’s say the existing mortgage equaled your basis just to keep it simple. And then you took your owner occupied deduction, and then the next year you sold half of your ownership for another $40,000, and the next year did that again until the agreed to purchase price amount was met. Would this avoid capital gains? Or reduce them? Let’s assume that there would be some savings in the following years because for example you showed no income. My main question is about spreading out the gains submitted by /u/clce [link] [comments]

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