Submitted by ScrollinMyLifeAway t3_11au3xn in LifeProTips
Comments
heidismiles t1_j9u3igr wrote
Why do you think the rules shouldn't apply to you?
FuturePerformance t1_j9u9aop wrote
What’s wrong with using a system as it’s designed? Looking for legal ways to skirt taxation isn’t the fault of the individual, it’s an outcome of a bad tax system
IsThatFuckedUp t1_j9ulbg9 wrote
Legal and moral are not the same thing. Stop making excuses and pay your taxes. Or don’t call the police, fire department etc next time you have an emergency since you don’t want to contribute.
KrabbyMccrab t1_j9vu8g9 wrote
Your tax dollars are more likely going toward the newest gen F69 values at 420 billion dollars because of "national security concerns".
FuturePerformance t1_j9unqdd wrote
We are morally obligated to pay taxes that we legally owe. I happily pay my taxes because I believe that many services & needs are better fulfilled by the Public. However -- Paying MORE than you owe makes zero sense.
The_Common_God t1_j9vjmm9 wrote
>Paying more than you owe
You do know he asked how to avoid paying the tax not how to minimize the tax he pays
KrabbyMccrab t1_j9vumzm wrote
If you are getting shot at, avoiding bullets is the same thing as minimizing getting shot.
There's plenty of better rebuttals than the semantic one.
The_Common_God t1_j9w3nqt wrote
Okay but you're not legally obligated to get shot at by the government for the sake of public amenities and services lmao. Not arguing semantics, I'm arguing intent.
There's plenty of better analogies than that.
KrabbyMccrab t1_j9w7osy wrote
There you go. Civic responsibility is a much stronger point than pinning him for using avoiding vs minimizing.
FuturePerformance t1_j9vl97t wrote
Avoiding tax legally is the same thing as minimizing taxes.. paying taxes that you can legally avoid is paying more than you owe.. I feel like you're splitting hairs here
DarkC0ntingency t1_j9vls5m wrote
You remind me of every person in marketing I hate
The_Common_God t1_j9w3cax wrote
Avoid and minimize are 2 different words that have 2 different contexts in this scenario. If anything I'm not splitting hairs so much as you're believing that the toupee is made out of one big piece of hair.
RandomPlayerCSGO t1_j9v5jca wrote
Taxes are not moral.
RandomPlayerCSGO t1_j9v5hep wrote
Why shouldn't you tried to avoid impositions made by people who steal from you
MrCrash t1_j9vbqwn wrote
Alternate pro tip:
Don't be a parasite. Pay your taxes.
The_Common_God t1_j9v4k8s wrote
Well you can try not being a self-absorbed scum bag and pay your taxes.
boneisle t1_j9u85h1 wrote
A 1031 exchange is about the only way
ScrollinMyLifeAway OP t1_j9v14j5 wrote
Thank you! Heard about this and am exploring
46_und_2 t1_j9vq22g wrote
1031 exchange is ultimately a tax deferral. It's not "avoiding" the tax. Just fyi. But yes, likely the only way to not pay the tax now. Crucially, the property must be held for "productive use or investment," essentially it must be business property that you sell to buy like kind business property.
[deleted] t1_j9vswb2 wrote
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FuturePerformance t1_j9u93kv wrote
Build a house on the land. Live in the house for two years. Sell the house & land as one piece of “property”
CornbreadFiasco t1_j9we0xr wrote
This really is the only way to not owe capital gains tax (that I know of).
Bulky_Mix3560 t1_j9uku44 wrote
This is the way.
DarkC0ntingency t1_j9vln31 wrote
Here’s a super easy trick: PAY YOUR FUCKING TAXES
keepthetips t1_j9tzlt6 wrote
Hello and welcome to r/LifeProTips!
Please help us decide if this post is a good fit for the subreddit by up or downvoting this comment.
If you think that this is great advice to improve your life, please upvote. If you think this doesn't help you in any way, please downvote. If you don't care, leave it for the others to decide.
[deleted] t1_j9tzz7o wrote
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[deleted] t1_j9u0w42 wrote
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PaulfromChicago t1_j9v0bk8 wrote
If you have children, you can gift them the land (it exceeds the annual cap so will count toward $12.8mm lifetime cap). If I’m not mistaken, they will receive the land on a stepped up basis (meaning they only pay tax above the market value that they received it at). This is subject to I believe some period of recapture but should work.
xSlappy- t1_j9v3ozv wrote
The stepped up basis only comes if its a bequest, not a gift. So OP needs to die first I believe
PaulfromChicago t1_j9vbxqz wrote
This is correct. I was assuming a sale after death.
ScrollinMyLifeAway OP t1_j9v17fh wrote
Fascinating and the first time I’ve heard of it. Does it only apply to children?
qdoug t1_j9vor2u wrote
The stepped up basis need not be children. I think it can be anyone, but there might be restrictions on non-US citizens.
neildmaster t1_j9v4kmy wrote
1035 exchange. You would have to roll the proceeds into another property. I think you have like 30 days to identify it and maybe 90 days to close on the new purchase. No tax due and your basis steps up to current property basis, I believe.
stealthdawg t1_j9vkr6f wrote
1031*
ScrollinMyLifeAway OP t1_j9vekxa wrote
Hearing similar - thank you
TheWilyVet t1_j9vc9mt wrote
instead of selling it, donate it
[deleted] t1_j9veagr wrote
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[deleted] t1_j9vjx6q wrote
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Devilpig13 t1_j9vk5u0 wrote
Consult a tax professional
[deleted] t1_j9vkjft wrote
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specialgravity t1_j9vn5vm wrote
Lose $500,000 in capital loses.
GrandmaSlappy t1_j9v1a87 wrote
Pay your damn taxes