does interspousal transfer deed step up cost base?
Hi,
I purchased my rental property few years ago for 300k in Washington State free and clear and since then it has doubled it's value with capital gain around 300k. I'm planning to get married in 2 years and want to buy a house in Los Angeles. Besides using 1031 exchange, is there anyway to avoid capital gain tax and also depreciation recapture? If I transfer the deed to my spouse when I get married, will the cost base be reassess to current market so I can avoid the 300k gain tax?
I currently have w2 income and is it better to sell when I have no income for lower tax rate?
Please advice.