All Forum Posts by: Kris Kahrs

@Naseer Khan Thanks for your response.  I did research this online and am pursuing confirmation with a CPA.  When I find out for sure.  I'll post here, but I think it does push a to a higher bracket and triggers another special clause as well.

 Hi Bob--Yes, those are the numbers.  Our approach was to take back a 2nd for the non-excludable portion only.  What would be the pros & cons of such an approach?  Many thanks!

@Thomas Harper Thanks for the offer.  I will keep this at hand.

@Eric Dowling can we just only put the amount above the exclusion (~$270K) into the Deferred Sales Trust?  Also, does that make sense for that instrument?  We were planning on using the proceeds for the next house.  Buy the next residence and then strip the equity for use in real estate investment.  We wanted to have the liquidity.

Hi All--my husband & I are in the process of selling our primary residence in Los Angeles.  We have a lot of equity, we've been in it for 20 years in a trendy neighborhood.  We bought the home for $230K.  We may have $100K in repairs & improvements to add to the basis.  The realtor thinks we'll sell for a little over $1.1MM.  If so, then not only would we pay capital gains on the after exclusion margin of perhaps $200K, but the additional income might very well push us into a higher tax bracket. We're trying to buy a place for $800K to take our property tax basis to a new property.  We would like to borrow against the new property, deposit the cash into a fund with an adequate interest rate so that we can offset the interest we're making on the investment against the interest rate on a line of credit.  

What is the most constructive, most tax-avoidant strategy here?  Any help is appreciated.  Thanks!