REI Tax Recommendations?

3 Replies

My mother in law is trying to decide if she should sell her condo in Santa Cruz, CA or keep it and rent it (and live with a friend).

She needs help understanding if/how she can avoid/reduce capital gains and how renting could financially work in her favor over time.

Any REI tax advisor recs would be greatly appreciated and especially if they specialize in Northern California.

Thank you!

@Garrett Richardson

Did your Mother-in-Law live in the condo in Santa Cruz - She should talk with an accountant to see if she is eligible to exclude the gain on sale via section 121 exclusion.
The exclusion is higher if she is married.

She may also want to think about an installment plan where she can be entitled to interest income from the buyer if she needs some income coming into the future.