Posted on 09/01/2009 9:48:00 AM PDT by 2ndDivisionVet
You shouldn’t owe any more income taxes.
Heck, it even SEEMS that the transaction would be a capital loss. In a fair world, the act of selling for 2.3 million should set the price to 2.3 million, which would mean you’d only owe income taxes of that much.
But my guess is that the loss on the house wouldn’t even be realizable, other than balanced against any short-term capital gains you might have lying around.
The original suggestion was to sell $5 tickets to sell quickly, which if you sold the same number of tickets, would net you 1.5 million. Still might come out a hundred thousand ahead or so — there would be property sales tax, and whatever monthly property tax you incurred while waiting for the other sale.
At the link it says the property taxes are $28,000 per annum. Still high, but not $60,000.
Yes, for the current owner. Property is re-valued at the time of sale. Homestead exemption is only $25K.
In today’s down market, wouldn’t that mean the house is worth less than before, lowering your property taxes?
The Property Appraiser would say you sold $3 million worth of tix, therefore, the house is worth $3 million. It is then up to you to prove it is worth less.
If I won the first thing I would argue is that is wasnt worth 3 mil.
Don’t know when gain would be realized either.
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