Residence to rental use with top tax savings
Article Abstract:
Sec. 121 of the tax code enables homeowners to exclude $250,000 of the gain on the sale of a principal residence (or $500,000 on most joint tax returns). The exclusion is available every two years. There are, however, many instances when homeowners who buy new residences desire to retain their old dwellings but need time to find an independent buyer that is beyond the stipulated period prescribed by Sec. 121. They may effectively retain their property with a stepped-up basis equal to the selling price and be able to exclude the gain permitted under Sec. 121 by selling the home to a controlled company, such as an S corporation, for full value. This does not violate tax law as the tax code does not prohibit the sale of the property to a buyer who is a related party.
Publication Name: Practical Tax Strategies
Subject: Law
ISSN: 0040-0165
Year: 1999
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Diversify strategies for an effective estate plan
Article Abstract:
The enactment of the Tax Reform Act of 1997 profoundly altered many areas of the estate tax system. Families therefore ought to evaluate their need and identify potential solutions to their estate planning problems. Federal and state death taxes need not be punitive nor impose penalties on hard-earned accumulated family assets at death with proper estate planning and the use of a number of proven techniques. Proper estate planning techniques and devices include testamentary devices, which provide several distinct tax advantages relating to tax deferral trusts, non-marital deduction trusts and generation skipping transfer taxes. Lifetime gifts ought to be considered a significant part of the estate plan.
Publication Name: Practical Tax Strategies
Subject: Law
ISSN: 0040-0165
Year: 1999
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Reduce the impact of the alternative minimum tax
Article Abstract:
The author provides tax planning information and methods which are intended to alert individuals to the application of and possibly aid in the reduction of the alternative minimum tax .
Publication Name: Practical Tax Strategies
Subject: Law
ISSN: 0040-0165
Year: 2000
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