dvc tax ques

[magic cruiser]

We are in the process of selling a rental house ( not our primary residence ). Is it possible to purchase DVC points with the profit to avoid paying capitol gains tax. After all DVC property can be rented out ???

 

[CarolMN]

I think that is a good question for your tax advisor.

Even though all of us here on the DVC board are smart, friendly and honest, you wouldn't really go by what an anonymous someone says on the internet, would you?

 

[ronw]

- "avoid paying capitol gains tax."
^

Probably not what you meant type yet somehow very fitting!

 

[magic cruiser]

meant to say " defer "... oh well, wishful thinking !

 

[SINK]

I have plenty of Capital Losses Available for Sale. Unfortunately, the Internal Revenue Code does not allow individuals to "sale" their capital losses. My co-workers suggest that I get a divorse and marry someone with huge unrealized capital gains and "split" the tax benefit associated with the utilization of my capital losses. DW did not go for it.

 

[mkunichi]

I think you're asking if your transaction could qualify for "like kind exchange" treatment by the IRS.

I'm not a tax attorney, but I did a cursory look through google search results for "like kind exchange" and went to the "Like Kind Exchange FAQ" and found the information illuminating.

I would enter "like kind exchange" into google and view the results.

Regards,
Mark

 

[maepartner]

How astute Mark! Would you like a job as my advisor, I really need one Mae

 

[mkunichi]

Originally posted by maepartner
How astute Mark! Would you like a job as my advisor, I really need one Mae

I'm not a tax attorney, but I've played one in the Sims.

It's surprising the amount of financial trivia one can accumulate by the time one reaches one's 30's.

No really, if you have a specific question, PM me or point me to a thread on the "debate" board.