Capital gains

[iggybr]

Anyone know of the chance of selling my property in a San Diego and transferring the equity to a boat as primary residence and thereby avoiding capital gains on the property?

[redneckrob]

Originally Posted by iggybr

Anyone know of the chance of selling my property in a San Diego and transferring the equity to a boat as primary residence and thereby avoiding capital gains on the property?

Zero. The Tax Cut and Jobs Act restricted 1031 exchanges exclusively to real estate.

[iggybr]

Bad news but thanks

[Shrew]

Is there equity in the property? You can take out a Home Equity Loan or a Home Equity Line of Credit. Then pay off the boat loan. Then sell the property and pay off the Home Equity Loan/HELOC. There should be no penalty in that case.

I'm not sure how much time would need to pass or if there are consequences for closing the LOC or Loan within a certain time of opening it. If I recall, there were penalties for closing either within a certain number of months of opening them when I had one. (I've had both HE Loans and LOC's.).

[Orion Jim]

When I want accurate financial advice I see my accountant or my tax lawyer. Free advice is worth what you pay for it......that goes double when you seek financial advice on a sailing forum.

[billnb]

Originally Posted by iggybr

Anyone know of the chance of selling my property in a San Diego and transferring the equity to a boat as primary residence and thereby avoiding capital gains on the property?

If the home was your primary residence you can exempt 500,000 of the capital gains if married if you meet certain requirements. That should cover most of the sale for your average home in San Diego.



If it was a investment property you can make certain deductions and change the cost basis of the home based on things like improvements and repairs.



Talk with a CPA.



Like kind exchanges don't apply to a boat sadly as others have said.

[Larry Florida]

Originally Posted by Shrew

Is there equity in the property? You can take out a Home Equity Loan or a Home Equity Line of Credit. Then pay off the boat loan. Then sell the property and pay off the Home Equity Loan/HELOC. There should be no penalty in that case.

I'm not sure how much time would need to pass or if there are consequences for closing the LOC or Loan within a certain time of opening it. If I recall, there were penalties for closing either within a certain number of months of opening them when I had one. (I've had both HE Loans and LOC's.).

Loans do not affect capital gains.