It should read “I understand your struggle with a 1031 exchange. Let me suggest another tax deferral strategy. It accomplishes the same thing but *without* the limitations of a 1031.”

Again, my apologies!

There is such a thing as a private foundation. The laws have been on the books since the late 1960s. There are over 20,000 of them in California and you don’t need to be Bill Gates to have one. It would take a lot of space to talk about what can be done.

Let me share one simple example from the attorney I know that specializes in setting these up. Their *foundation* purchased a condo in 2002, sold it in 2004 for a $65K gain and the foundation only owed $368 in transfer tax! There is so much more that can be done. I believe they charge $15K to set one up and can do it fairly quickly.

And if you follow golf, you have heard Tiger Woods donating his winning checks to his foundation. Maybe this gives you an idea as to why.

Email me privately if you want attorney contact information and I will be happy to send it. I receive nothing from the referral.

All the best!

i’m offseting the the capital gains with capital losses and i’ll pay tax on the difference.

I don’t see the problem with using passive losses from stock to offset capital gains from sale of property.

plus i have invested 10k this year in oil wells so thats a 9k write-off.[unlike other passive losses, there is no 25k limit to oil drilling related passive losses]. of course if i start getting a return on the oil, then it’ll just add to my income!

Couple of questions:
What are the timelines on the 1031?

Can you claim cap gains against passive losses? It sounds like you want to use excess passive losses (above the 25k) to offset cap gains on the house – do I understand this correctly? I didn’t think this was allowed.

Seems like the best thing to do anyway is to use your outstanding cap losses to offset gains and carryforward the passive losses rather than mess with the 1031.

good stuff man!