Possible to reduce capital gains tax on home sale?
January 24th, 2009
spence1209 asked:
My parents are selling their investment property to fund their retirement. However upon my calculations they are looking at a 45K hit in capital gains. I was going to suggest that upon selling they use a seller financed mortgage so that they will not be taxed on the full amount at once along with providing them a steady investment without any risk. Would this work?
What if they incoming payments were put directly into a Roth…would this still be taxable income? Is there any way to reduce this amount?
Todd
My parents are selling their investment property to fund their retirement. However upon my calculations they are looking at a 45K hit in capital gains. I was going to suggest that upon selling they use a seller financed mortgage so that they will not be taxed on the full amount at once along with providing them a steady investment without any risk. Would this work?
What if they incoming payments were put directly into a Roth…would this still be taxable income? Is there any way to reduce this amount?
Todd