Easy Property Selling

An LLC is a pass-through entity so if it makes a profit on a sale, that profit will end up on your own tax return and you’ll owe the taxes. You can certainly borrow the money but the tax result won’t change.

If you buy a property and rent it out for a while, or at least have it available to rent, then you might consider a 1031 exchange. Then you could sell the property and buy a replacement and defer the gain. It gets absorbed into the basis of the replacement property. You will not be taxed on the gain unless you sell the replacement property in a taxable sale. You can 1031 the replacement property and defer the gain indefinitely.

There are very strict requirements for a 1031 exchange. You have to use an accomodator and meet timing and identification deadlines. It does not work with property that is bought for the purpose of flipping. Also, the gain from flipped property is not capital gain, it is ordinary income. Consult a tax accountant who specializes in real estate.

I’m going suggest getting advice from an accountant and lawyer. I also have a feeling that trying this will only hurt in the long run and end up in jail time.

I don’t know the tax law now either, but 5 years ago, my grandpa was buying and selling apartments complexes real quick. as long has a he bought another complex so many days after selling it, he didn’t get hit with capital gains.

You may want to consider forming an LLC that is owned by your 401k or IRA. You would need to consult with those that deal with them (Self Directed Retirement Plan) Having it in a tax shelter similar to that will enable you to keep capital gains sheltered. There are a lot of things that could get you into tax problems so don’t take my word for it. Google Self Directed Retirement Plan and find a company that could give you actual advice