taxes

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My husband and I have done several homes.  Buying, doing all repairs an selling.  We are making minimal profits ,either giving equity to  kids or supporting ourselfs during the rehab process . We claim gains on each one 10-25 thousand on our own joint tax return. should we be doing differently ? The latest one is valued 160,000. going to sell to our son 135,000 we have 110,00. into it . What would be the best way to do this minimizing our capital gain, while giving him half the gain . 

It's probably worth meeting with a flat fee based CPA - not just for this property this year, but to examine this issue on your past three years. It's a situational tax to claim, but there are plenty of instances (like if you've lived in the property 2 of the past 5 years) where the tax would not apply. The valuation method is also important. Even if a CPA charges you a few hundred dollars, you might save thousands by re-filing. Not to mention peace of mind.

Keep in mind if you do sell RE to your son at below market value, it is considered a gift of equity. If this gift exceeds the IRS annual limit of $14,000 it would have to be reported. The donor would not necessarily have to pay tax (not unless it exceeds the lifetime 5.34 million), but it would have to be reported to the IRS.