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Posted by inky dink on January 28, 2008, 10:57 pm
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> On Fri, 25 Jan 2008 17:43:00 -0500, nebo-- wrote:
>> I have a question about how to benefit the best from the sale of
>> tangible and intangible property. My wife sold trees and right of way
>> (easements) for $15,000.00. Is there a way to reduce the amount of tax
>> we will have to pay on that by, say gifting the proceeds? Not as a
>> charity gift but either a spousal or children gift of the proceeds.
>> Thanks for any help anyone may or may not be able to provide me.
>
>
> You say "trees and easement". Hopefully, you know how much for
> which. Presumably, you didn't sell the whole property. Unless
> your basis is less than the price paid for the easement, all
> you have is an adjustment to basis. When you sell, your capital
> gains (if any) will go up by the amount of the easement. (If you
> DID buy the property for less than you got for the easement,
> the _difference_ is capital gains now, and your basis when you
> eventually sell will be zero).
I thought the IRS took the position that you need to prorate the basis to
determine the basis of the easement, and then pay tax NOW. Why anyone would
do this, unless the easement sold for a ton of money, is beyond me.
--
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