Capital Gains Avoidance

[Spencer Keane]

Hi all,

I am currently in the process of selling a vacant lot owned by my LLC in Washington state. I have owned the property for about 2 years and will only make about $8k, but I was wondering if there is a way to avoid paying capital gains tax on the sale?

Thanks in advance,

Spencer

[Michael Plaks]

@Spencer Keane

The potential tax savings on the $8k capital gain are comparable to the cost of arranging a 1031 exchange, not to mention the hassle. While I do not know your entire financial situation, I'd suggest that you pay this tax and move on. Most likely, it's not worth the trouble.