Tips on Cash deal TAXES?
So I will be making a good amount of cash from the sell of my home. Since I have been at my home for Way over the 2 yr minimum I will not have to pay Capital gains. With this cash I plan on kicking off my investing career. I have been reading and researching and listening to the podcasts religiously and feel ready to get my feet wet.
As I have gone over various scenarios....I have one question that has been bugging and would like some "Veteran" input. What is the best way to avoid paying HUGE taxes on real estate on an ALL CASH deal? Would forming some sort of LLC or the like help me? It would suck to lose half my profits from a cash deal to capital gains...In theory cash seems like the way to go...but after thinking about the taxes ...Im not so sure. I have been thinking of using hard money loans to maybe help this dilema. Im sorry if you are reading this and shaking your head at what a foolish question this might be....BUT Im a newbie at this game...and yes..I plan on speaking with a CPA next week, but any info or advice before hand would be greatly appreciated :)