Ways to minimize capital gains tax

[Christian Chacon]

I have a property that I am looking to sale in the state of texas, but before doing so I was looking to see what options I have in order to minimize my capital gains tax. I realize I can always reinvest into a like investment. Is there a way to purchase a property for my children(under their names and have them claim homestead for 2 years) with the proceeds from the sale and not be taxed on it?

[Natalie Kolodij]

Is this your primary home or a rental? 

Doing the 1031 exchange would be your best option here. You want to sell a house- and have a house for your kids without paying gains....

There is no way for you to sell your house, then have your kids live in the new house for two years, and not pay tax. That's not....that's not any thing without utilizing a 1031. 

You can 1031 into a new rental property...and rent it to the kids at fair market value. Or rent it to strangers for a year or so and then gift it to the kids. 

The problem with gifting onto the kids in this way is that they are going to inherit your original basis. So when they sell that house they're going to have a pile of gains. 

Is there a certain reason you want it in their names?