Selling Real Estate without Paying Taxes

The decline of the financial markets has led to a white-hot real estate market as investors move their money away from the stock market. As the transaction rate increases, sellers are discovering that there are some tax surprises associated with selling real estate; namely, that federal and state taxes can consume as much as one-third of the profit on the sale of a property. Fortunately, legal methods exist for deferring or eliminating taxes. Attorney and real estate broker Richard Williamson explores the various ways to avoid taxes when selling real estate. In nontechnical, plain English and using actual cases and client situations, he explains the options available to take advantage of tax deferral or tax eliminating methods, including: *Charitable remainder trusts *Family philanthropic foundations *Installment sales *Private annuity trusts *Self-directed IRAs *1031 Tax Deferred Exchanges Williamson discusses the pros and cons of each option and gives examples of how each method works in everyday practice. He also includes sample forms for estimating capital gains taxes and IRS forms.