really loooooong! - Posted by roberts

Posted by lyal on December 26, 1999 at 18:46:38:

I am not an attorney and I would strongly advise you to consult one on this transaction. Keep in mind you only pay tax on your profit on the property. This would be the difference in your basis (what you paid for the property plus money you put into it for improvements etc) and the price you sell it for. Even if you inherited it there is some basis price that was used for the transfer.
All the best, Lyal

really loooooong! - Posted by roberts

Posted by roberts on December 26, 1999 at 10:35:51:

Im a novice. I need some advice. I have a piece of land thats worth approx. 500K. I want to sell it but do not want to pay the IRS 20% gains tax. How can I avoid this legally? I want cash because I need liquidity for other investments (want to make a mil by 35, now 26). A real estate development company has expressed interest in the property. I suspect they have deep pockets, so I am thinking about asking them for a loan equal to the value of the property or less. Someome told me that loans are not taxable, so this will be a way to get the entire nest egg tax free, right? I already know about 1031 exchanges, this won’t give me the liquidity. Would ther be any benefits for the development company?

Also, I have a friend whose family’s estate is in probate. Its raw land acerage. Using my IRA money I am going to invest in this estare by buying a percentage of his interest. Also I will get my lawyer, title company and surveyor to assist us in clearing the title to the estate.
When this is all over, my friend will deed according to my acquired interest, a portion of the property to me. I will then sell my portion for a tax exempt sale (because I bought it with IRA money).

Please advise. Am I on target or have I missed the mark?

Last, can I transfer money from an annuity to an IRA? I know an IRA can hold an annuity, but can an annuity be transfered to an IRA?