How does it work? I have a home in detroit and the tenants want to buy it, i need to sell it before the taxes go up in the spring. is there a way to do it where everything is in their name. i know with a land contract if they default then i get it back. anyway to pull out the equity without a line of credit or loan?
I would be leary. Unless they have cash into the deal they have no risk. I friend did it on a house in Denver and lost all of his equity. Get them to buy it and pay you off. If it was your primary residence in two of the last 5 years no tax consequences potentially. If it is an investment that has gone up in value you could do a 1031 and buy something else and avoid capital gains.
Good Luck
Northern Star
Good Luck
Northern Star
N-star..
Is there anything you can do to avoid capital gains tax on a primary residence owned for 2-3 years?
Have a friend going through a divorce, house is joint ownership, and value has increased around 100,000 in the 3 yrs they have owned it.
He gets to keep the house but has no need for it due to size of it.
Any Suggestions?
Thanks, Tamer
Is there anything you can do to avoid capital gains tax on a primary residence owned for 2-3 years?
Have a friend going through a divorce, house is joint ownership, and value has increased around 100,000 in the 3 yrs they have owned it.
He gets to keep the house but has no need for it due to size of it.
Any Suggestions?
Thanks, Tamer
If you have lived in a house for 2 of the last 5 years as your primary residence there is no capital gains tax. Might want to consider selling the property as part of the divorce and split the proceeds of the house. If he gets the house and the $100k in equity (she is probably getting $100k somewhere else in the divorce). If he sells it and pay real estate commision and/or has to drop the price to sell it he may end up with less than $100k. Thats what I would do if my plan was to sell it anyway.
Hope that helps
Northern Star
Hope that helps
Northern Star
