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Ted Swagerty's profile image
Ted Swagerty's profile image
Ted Swagerty
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Ted Swagerty's profile image
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Ted Swagerty
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Ted Swagerty
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Tax, SDIRAs & Cost Segregation

Tax strategies to avoid/mitigate capital gains

Ted Swagerty
Posted

Hey folks!

An older friend of mine would like to liquidate his four properties but he would like to avoid paying capital gains tax.

I suggested that he and I form a LLC and slowly transfer his properties to our LLC.

Are there any other strategies that I am not aware of?

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Ashish Acharya's profile image
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Ashish Acharya

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Ashish Acharya
Ashish Acharya
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Ashish Acharya
#1 Tax, SDIRAs & Cost Segregation Contributor
  • CPA, CFP®, PFS
  • FL
Replied
Originally posted by @Ted Swagerty:

Hey folks!

An older friend of mine would like to liquidate his four properties but he would like to avoid paying capital gains tax.

I suggested that he and I form a LLC and slowly transfer his properties to our LLC.

Are there any other strategies that I am not aware of?

Hey, how does transferring the properties to LLC achieves his goal of liquidation? he still owns the interest in the partnership. This is not a liquidation or a taxable event.

How old is you friend? Does he have kids? He might be paying a tax on the gain when he can just pass it on without tax implications. 

Yes, there are ways to defer the gain if he wants to liquidate. 

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