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Buying & Selling Real Estate

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Khoa Ha
  • Real Estate Broker
  • Garden Grove, CA
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157
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How best to structure a deal to pay the least capital gain tax?

Khoa Ha
  • Real Estate Broker
  • Garden Grove, CA
Posted Dec 12 2019, 10:46

I have a question that I hope I can either get an answer or direct to someone that can help us out. 

Our current situation is that an investment property we acquired in 2009 is under my sister name. She is single and does not have any children. We bought it at $530,000 with 20% down ($106,000) and it is now value around $1,300,000. The loan balance is currently at around $400,000. We have decided not to do a 1032 exchange because some of us do not believe that the market will continue to rise. In other word we might be able to acquire cheaper in the future (please no debate on which way the market will be heading). 

What is the best way to minimize the tax on the capital gain or will it just be a flat rate on how much we profit after the sale? Do I need a financial adviser to help us with this?

Thanks,

Khoa

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