I'm in the process of selling my home. If I sell it I stand to make about $450,000 in capital gains. Since I'm single, I would have a $250000 exclusion so I would be taxed at 15% of $200,000 (or about $30,000) and that doesn't even include state tax.
I've been talking to a builder who would like to take my house on trade for resort/investment property. By doing this we had talked about him buying my house for say $100,000 less and him selling me a house for $100,000 less. This would help defer some capital gains on my house but is it 'legal' by IRS standards?
Thanks for any help.
I've been talking to a builder who would like to take my house on trade for resort/investment property. By doing this we had talked about him buying my house for say $100,000 less and him selling me a house for $100,000 less. This would help defer some capital gains on my house but is it 'legal' by IRS standards?
Thanks for any help.