jamesp
Cave Dweller
Member since October 2012
Posts: 36,561
|
Post by jamesp on May 23, 2017 10:59:53 GMT -5
This little storm is setting up. It has a lot to do with my retirement concerns as a 60 year old man:
Never dealt with real estate losses.
Got some real estate tax strategy for you. Real estate tax 101. ha
OK. 2017 Property sale #1
320K minus 22K commission minus 50K basis = ~248K gain (I think real estate commissions come straight off the sales price ??)
2017 Property sale #2
65K minus 132K basis = 67K loss.
so 320-22-50-67 = 181K gain for #1
I have a third property I could sell:
50K(I have a buyer for 50K) - 149K basis = 99K loss……
Yes, selling for 50K and taking 99K loss, BUT, the loss is fully deductible from the property #1 gain of 181K.
OR, can I reserve the 99K loss if sold next year ? Or does loss have to be used against gain(gain, not business profit) in the year of loss(and gain).
I will never sell the third property for more the 70K. Not soon anyway. But tax savings(subtracting loss from big gain) may be greater than selling it at 70K-80K even 90K - I think…
Please advise
Thanks
Jim
|
|
|
Post by coloradocliff on May 23, 2017 11:15:59 GMT -5
Jim, Think you are pretty close. We both know the laws change constantly so you better get advice from a good cpa. We also both know CPAs aren't business people like us so we don't take advice from them except for their particular area of expertise. We also know that free stuff isn't as good of quality as the stuff we pay for. Yep brother . We get what we pay for. You know.. Pay for it and get second opinions here. Besides all the accounting people are boring and don't have multiple interests in natural sciences. BTW If you're going to hang out with Mel... #1 don't drown her, she only has experience in knee deep creek water and 2 Get the knees and elbows of your swimming suit patched. You'll make a good impression on the kid. grin Hehhehe
|
|
|
Post by captbob on May 23, 2017 11:28:27 GMT -5
We both know the laws change constantly so you better get advice from a good cpa. We also both know CPAs aren't business people like us so we don't take advice from them except for their particular area of expertise. We also know that free stuff isn't as good of quality as the stuff we pay for. Yep brother . We get what we pay for. You know.. Pay for it and get second opinions here Agreed. I'd pick this place for financial or legal advice right after I came here for medical opinions! Even if there is a CPA (or real estate tax attorney) here, I'd fork out for the bill to get the facts straight from the horse's mouth rather than on the internet. Folks in that business also know the latest loopholes. Like by reinvesting it you pay no tax ... Talking some hefty $$ here. Penalties & Interest may be a killer if you get it wrong. Couple hundred could save you thousands!
|
|
|
Post by orrum on May 23, 2017 16:04:23 GMT -5
Set up 2 special S corp. One owns all, the other leases everything. As soul stock owner you can take stock value loss forever at some percentage per year against taxable income untill your full loss is absorbed.
|
|
jamesp
Cave Dweller
Member since October 2012
Posts: 36,561
|
Post by jamesp on May 23, 2017 17:17:56 GMT -5
Well it's simple by the old rules which probably have not changed much.
Tax on 248 should be .25 X 248 = 62. Tax on 248 - 166 loss = 82 should be .25 x 82 = 20.5
62 - 20.5 = 41.5
So 41,500 is a big dang differece in taxes. So the question.
The 3rd property is not going to appreciate. Fern growers in the town of Pierson going out of biz left and right. Leaving a glut of land and running price downwards. Not much future in appreciation. But one never knows that. Main question is
|
|