From: Always Learning
Hypothetical:<p>
I buy a property for $500K with dual development potential. Old house is rehabilitated, land is subdivided and new house is build for $250K.
<p> Total spend $750K.
<p>
New house is worth $450K, rehabilitated house $400;
<p>Total value $850K.
<p>Can I, or should I say how can I structure it so that I can sell the new house $450K and roll the profits into the existing house without paying tax on the profits? (Meaning I have a $400K house that cost me $300K).
<p>"Too easy" you say! If that is too easy, then my next question is: How do I make the same $100K virtual "profit", but structure it so I can claim a $50K loss to my taxable income?
<p>
<hr width="50%" color="pink">
<ul>
<li> Unless you change how you are, you'll always have what you've got.
<li> To have more than you've got, become more than you are.
</ul>
Hypothetical:<p>
I buy a property for $500K with dual development potential. Old house is rehabilitated, land is subdivided and new house is build for $250K.
<p> Total spend $750K.
<p>
New house is worth $450K, rehabilitated house $400;
<p>Total value $850K.
<p>Can I, or should I say how can I structure it so that I can sell the new house $450K and roll the profits into the existing house without paying tax on the profits? (Meaning I have a $400K house that cost me $300K).
<p>"Too easy" you say! If that is too easy, then my next question is: How do I make the same $100K virtual "profit", but structure it so I can claim a $50K loss to my taxable income?
<p>
<hr width="50%" color="pink">
<ul>
<li> Unless you change how you are, you'll always have what you've got.
<li> To have more than you've got, become more than you are.
</ul>
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