Having 2 or more Corporations - Capital Gain TAX Advantage?

[Nir]

Hi All,

Is it true you may not have to pay capital gain tax when selling a property IF you have a few corporations that are related like PM company and RE company? Can this kind of structure really benefit us that much tax-wise!? I heard something about it in the past, not sure if it is true though, why or how this works(?)

THANKS AND REGARDS.

 

[Thomas Beyer]

QUOTE (investmart @ Nov 12 2009, 08:05 AM) Hi All,

Is it true you may not have to pay capital gain tax when selling a property IF you have a few corporations that are related like PM company and RE company? Can this kind of structure really benefit us that much tax-wise!? I heard something about it in the past, not sure if it is true though, why or how this works(?)

THANKS AND REGARDS.
some people treat properties like manufacturers treat inventory .. then they pay income tax on ultimate sale .. but none to my knowledge when they sell one and buy a bigger one .. ask an accountant .. so it is a tax deferral strategy as on death or ultimate sale big taxes are due.

Personally I think this strategy is fishy, as a house or building is not inventory.

You pay taxes when you sell a building. Pretty simple rule.

Ensure that your sale price is higher than your purchase price . and don`t worry about the taxes owing (i.e. pay it) .. and you will have a SPLENDID LIFE .. many people fail at the point of buy low .. sell high !!