PaulfromChicago
PaulfromChicago t1_j9v0bk8 wrote
Reply to LPT Request: how can I avoid capital gains tax (20%) on land sold (<$500,000)? by ScrollinMyLifeAway
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.
PaulfromChicago t1_j9vbxqz wrote
Reply to comment by xSlappy- in LPT Request: how can I avoid capital gains tax (20%) on land sold (<$500,000)? by ScrollinMyLifeAway
This is correct. I was assuming a sale after death.