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#3971

10-06-2016, 04:15 PM

OKMICK

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Quote:

Originally Posted by soft 02

She offered that advice. She needs to look at exactly what I will be paying first. Worst case is 15% Fed, 10% State and bumping me into the next tax bracket on income taxes and another 10% to the selling agent. At a guestimate of value of 350k it will be a lot of taxes. What I dont get is I sell it and pay the Feds and State then they get me again on income. Thats taxing the sale twice isnt it?

Gonna tread lightly as it is not my area of expertise but I have sold properties and utilized the installment sale method. There is a cap on the max you can receive the first year (last time I did one it was I believe 29%) You will only pay taxes on the amount you receive in any calendar year. Theoretically you are not being taxed twice, you are being taxed one time on the amount you receive for that reporting year. EDIT: You will, of course, also be taxed each year succeeding on the amount you receive during those years.

Utilizing a 1031 tax deferred exchange you are simply delaying the payment of taxes until a later time.

#3972

10-06-2016, 04:19 PM

PapaThiele

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Couldd it be that it is being taxed twice but for different reasons...a sales/property tax, then an income tax. Or am I looking at it more complicated than it really is? Because the tax code is not complicated, am I right?

#3973

10-06-2016, 04:29 PM

OKMICK

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Quote:

Originally Posted by PapaThiele

The state of California does charge for what are called tax stamps, Marcus. Haven't sold CA property in a long time but it was 1.10 per thousand of sale price. Not exorbitant but a tax nonetheless.