All Forum Posts by: Stuart Levine

Thank you all for your replies!

This is my very first experience on this site, and I am beyond impressed and very grateful for not one, but three, very knowledgeable and helpful replies!

   Simply put, my “profit” from this transaction will be the second house, which I intend to hold for a while, (well over a year), the resulting gain, when it is eventually sold, will be long term capital gain. I would like to minimize my reportable profit in the current transaction, which will be taxed as ordinary income plus self employment tax (yuck), in favor of larger taxable gain, at more favorable rates, in the future. Soooo, I would essentially like to know how declare (legally, of course) the lowest possible gain on the one house I am keeping, in this current transaction. 

With much appreciation and amazement, 

       Stuart

I have an assignable purchase contract for two houses as a package. I am sure I can sell one of them for enough to pay off the entire contract, at which point I will own the other house free and clear. My biggest question is when the contract is closed out, Do I report the second house,(valued at about $60,000), as income? Or, do I essentially have a zero basis in the second house, and will report a larger gain when it is,(eventually),sold? 

   I am an experienced investor, renovator, flipper, But have never come across the specific situation. Would really appreciate some tax advice here,Or a referral  to someone who might be able to answer my questions. 

Thanks in advance, Stuart at Zombiehouse restoration