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Help my inlaws save on taxes
Hi all,
My inlaws are considering selling their home that is sitting on 5 acres surrounded by 600+ acres of almond farm that was owned by MIL's father, that she is inheriting along with her 5 siblings. The farm is in the process of being sold, and I'm assuming the step up cost basis will save them considerably in taxes (unless I'm misunderstanding the definition of that rule). Are there any costs/taxes involved in this sale that I'm not considering? I suggested a 1031 exchange if the capital gains turn out to be large enough to trigger an expensive tax bill.
As far as their personal residence, they are due to profit well above the $500k allowance for tax avoidance (not sure of the proper term... it's late lol). Are there any other avenues that might be possible to save them from a big tax bill? They are both on Social Security, if that matters.
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- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
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@Andrew Albritton, There are some great thoughts here. But it would probably take up way more band width than BP has. I sent you a PM and there is a link on my website to an online scheduler. I'd be happy to process these further in a private conversation where we can discuss your situation privately.
- Dave Foster
