Hey IRS, keep your dirty mitts off my $50k!!!

[Matt Mimnagh]

So I have two deals closing this year that are going to net me approximately $50k. I'm trying to figure out a way to avoid paying too much tax.

The first property is an empty lot that I got for free when I purchased a house. I've owned the lot since December 2014. I have a buyer all lined up and ready to build when the deal closes. With all expenses accounted for I should bring in about $20k profit. 

The other deal is the house that the lot came with. It's been our primary residence and I think we will be in it for a year by the time we're to move out and we plan to rent it for at least another year. By the time we sell it, depending on our market, which is steadily climbing, and other factors, we expect to profit around $30k. Can we avoid the capital gains tax on the profit from the house if we maintain ownership even if it is not our primary residence?

Are there any clever and LEGAL ways to reduce the tax bill that you would recommend?

Thanks.

[James Slaughter]

@Matt Mimnagh

I believe @Matt Mimnagh asked the BP community "Are there any clever and LEGAL ways to reduce the tax bill that you would recommend?". 

Are you telling everyone on BP that each year when you file your taxes, you don't claim every deduction possible?

I don't like tax cheats either, but to insinuate that if Matt M. wants to use legal tax

strategies to minimize his taxes he should move to North Korea is a little over the top...make that way over the top.  Just my 2-cents.