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Capital Gains Avoidance
Hi all,
I am currently in the process of selling a vacant lot owned by my LLC in Washington state. I have owned the property for about 2 years and will only make about $8k, but I was wondering if there is a way to avoid paying capital gains tax on the sale?
Thanks in advance,
Spencer
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Michael Plaks
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Michael Plaks
#1 Tax, SDIRAs & Cost Segregation Contributor
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#1 Tax, SDIRAs & Cost Segregation Contributor
- Tax Accountant / Enrolled Agent
- Houston, TX
The potential tax savings on the $8k capital gain are comparable to the cost of arranging a 1031 exchange, not to mention the hassle. While I do not know your entire financial situation, I'd suggest that you pay this tax and move on. Most likely, it's not worth the trouble.