Capital gains tax
How would you minimize capital gains tax? Supposed you bought a house and lived there for many years. You kids attended school and so on. Then your job locations changes and you have to move to the area with the same house prices as yours. But if you sell your house you will be short of capital gains tax, plus fees, realtor, whatever. Basically you sell property for 100, you get 70, and your are short of 30 (hypothetically). While in the areas where house prices don’t go so much up, people can exchange home without paying capital gains tax (I’m aware about exclusions of 250 for not married and 500 for married). And if you have an investment property, you don’t pay capital gains tax if you buy another property of similar value at the same time frame. So, did anyone came up with some solutions to minimize losses?
Rent out your old house for 1-3 years and use that to subsidize renting in your new location (or your new morgage if you want to buy). Before the 3rd year is up, sell your old place and do a 1031 like-kind exchange for a new investment property. You get the full primary residence capital gains deduction and delay tax on the remaining capital gains. Rent the new place out for 2 years and then you can move into it as your primary residence if you so desire. If you're patient and have enough money it is easy to minimize/delay capital gains taxes, unless Congress gets rid of 1031 like-kind exchanges.
Lose money with stock
Turn your assets into crypto and buy stuff with crypto cash. Never pay a single penny
Cryptos r taxable.
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