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Accounting/Investing Strategies When Selling

R

RE123RE

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Hi,
We are not selling much but a friend who also invests. and owns much. has asked me the following question:
What are some legit accounting/investing strategies to not pay tax when selling?
Please distinguish between properties under a corporation and not.
Thanks
 
Thomas Beyer

Thomas Beyer

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A few options:

  1. Sell with no gain
  2. Or cheat
  3. Or buy another firm with losses if asset is held in a corporation
  4. Or commingle with losses say from previous years ( either personally or in a corporation )
  5. Or buy in the US (in a corporation) as you can roll forward gains tax free if you buy another asset, the so called 1031 rollover provision. Very powerful wealth creation tool used by wealthy folks that bought a house or apartment building or old strip mall in the 1960's for a few ten thousand $s that is now worth millions in 5 office towers !
 
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R

RE123RE

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ThomasBeyer said:
commingle with losses say from previous years ( either personally or in a corporation ).
Click to expand...
Hi,
So if a corporation has a retained loss of 100K for example from the previous 10 years (Total revenue - Total operating expenses in years 2005-2015), and has just sold a property purchased for 100K, for 200K,
then there will be zero capital gain tax to pay?
Thanks
 
Thomas Beyer

Thomas Beyer

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I believe capital gains can only be commingled with capital losses, not operating losses from operation.
 
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