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Thanks for your question.
I am confused a bit by your dates. I can answer this, but I need some clarification.
Can you tell me this:
On what date did he sell the home? Did he report the home sale on his taxes when he sold that?
When you say he rents an apartment, do you mean he lives in an apartment, or he has an apartment he rents out for income?
you mentio a business form 2 and 1/2 years ago. Is this what he sold now? and what was the date he sold it?
Is it the home or the business sales that he wants to protect from capital gains.?
What kind of business was it?
Thank you. I need to make sure I understand the situation before I answer so that I give you the correct information. do not worry, these back and forth answers and questions do not affect pricing. it is included in the one price.
Your patience is appreciated.
I understand that he sold his home in 2003, for seven hundred forty thousand dollars (740,000 dollars). did he report the sale on his income tax for that year?
I also understand that he sold his business in 2005 or 2006? ANd this is the property for which you are concerned with the capital gains tax. Is this correct?
You indicate your father financed the business and receives 2,500 dollars a month plus 25,000 dollars one time a year. Do i understand correctly that this is a payment for the business? Did he sell the business on an installment loan to the buyer?
Thank you for the additional information. I can address this issue now.
So the home is not what we have to be concerened with. that is good.
With the information you have given, I can not provide a perfect solution. The perfect solution would have been to transfer the business to a trust, and have the trust sell the property. Ther would still have been capital gains, but the trust would have paid it. Set up as a charitable remainder trust. See a descripiton here:
It is not to late to see a trust attonrey to see about transfering the sell contract into trust and letting them receive the balance of payments.
for now, for the past year, the best he can do is file his taxes for a installment sell. This defers tax on the unpaid balance. IN otherwards he only pays capital gains tax as he gets paid for the installments.
He would file taxes using the following form: http://www.irs.gov/pub/irs-pdf/f6252.pdf
So that he does not get his taxes mixed up, he neesd to use the form for the correct date. You can get the prior year forms at: http://www.irs.gov/formspubs/article/0,,id=98339,00.html
I recommend using Turbo Tax for the appropraite year to do the taxes. These are still for sell for as far as 5 years back.