Posted by E.Eka on October 09, 2003 at 08:37:37:
This is the problem. You made a number of assumptions. First of all, it was easy for me to rattle off the info regarding capital gains because I refer to that on a regular basis.
You also assumed that because one receives $75/hour for tax planning and advice that they are automatically and expert. The initial comment was a joke, which was further accentuated with “HA HA”. More importantly what make me an expert is over 10 yrs of experience.
Third, you forgot that I’m on this board. Which means that I not only read posts and offer my opinions but I understand a lot of what CRE is about. So the fact that I remind you of some narrow minded real estate agent is irrelevant. I understand, welcome and practice creative forms of investing. Most RE agents are like that because they want their money as easily as possible. They have a certain personality, not interested in risks. They want to find buyers the conventional way and pick up their commission at closing.
The point is your smart a$$ remarks annoyed me. The poster had asked if it was possible to AVOID not minimize the capital gains tax. I just told him that 1) he wouldn’t subject to capital gains tax, because his gain is not from a capital asset, 2)1031 may work, it would have to be structured in a way were no boot/cash was received from the transaction 3) if it’s not a 1031, any gain would be included in income because it’s from his business operations.
I just didn’t think the tone of your comments were unwarranted. You can by all means refute what I say, that’s what this board is about but before you do, contact another competent accountant who works in tax and ask him/her the same thing. It’s not a science, a lot of it is interpretation, however some regs are more clear cut then others. Being that I live in Washington,DC and deal with IRS agents from the service on a regular basis, I’ll think I’ll pay more attention to their reservations than yours.